Coastal Cooperative Achieves Dramatic Savings For Its Member Hospitals In Second Year of Operation.

Health & Business Editors

NEW YORK--(BW HealthWire)--June 27, 2000

Coastal Cooperative of New Jersey, LLC ("Coastal"), announces that it has achieved more than $2.1 million in annualized savings and manufacturer rebates to the benefit of its member healthcare facilities. This represents a 15% total impact on $15 million dollars in combined annual purchases. Coastal, now in its second year of operation, has been performing custom contracting for its members since August of 1998.

"The continued success of this cooperative is entirely attributable to the strong involvement and support of the clinical and medical staffs at each of our member hospitals," says John K. Lloyd, Chairman of the Board of Coastal and CEO of Meridian Health System. "This lets our staff and communities know that we are doing everything possible to cut costs in innovative ways without lessening our healthcare standards or scope of services offered at our healthcare facilities."

Coastal projects future savings of more than 30% on a total contract volume of over $80 million annually. "We have achieved some very dramatic savings that will directly benefit Coastal's member institutions", stated Timothy Mangione, Vice President for Network Services at JPC. "We have done this through pre-committed, competitive bids to pre-approved suppliers and also by forming strong partnerships with strategic manufacturers such as Tyco Healthcare, Allegiance, Hill-Rom, and C.R. Bard."

Coastal Cooperative, managed by Joint Purchasing Corporation ("JPC"), is located along New Jersey's central shore region, in Monmouth and Ocean Counties. Coastal is comprised of Jersey Shore Medical Center, Medical Center of Ocean County, and Riverview Medical Center, along with several long term care and assisted living facilities, rehabilitation centers, outpatient surgery centers and various specialty clinics, totaling more than 1,500 combined beds. Through a customized contract portfolio tailored specifically to the needs of the Coastal Cooperative, these members have realized dramatic savings impact in such areas as diagnostic imaging products and equipment, medical-surgical products, food service commodities, and capital equipment as well as laboratory and surgical services.

Coastal will add to its contract volume in subsequent years through internal growth and by the addition of new members. The regional cooperative model serves as a means to bring together health care organizations with shared missions and visions allowing like-minded organizations to achieve their strategic goals, strengthen their regional position and realize cost savings. JPC, headquartered in New York, NY, is a cost management services company that offers solutions to healthcare providers seeking to strengthen their bottom lines. JPC's cost management strategies help healthcare facilities become more solvent in order to fortify their mission of providing high-quality medical care to the communities they serve. For more information on JPC, please visit the website at www.jpc.org

All inquiries should be directed to Timothy Mangione, Vice President for Network Services for JPC / Coastal Cooperative, at 732.295.6284.