IASIS Healthcare Selects McKessonHBOC Information Technology Business Solutions to Succeed in Market.

Business Editors & Health Writers

ATLANTA--(BUSINESS WIRE)--May 23, 2000

The Information Technology Business (ITB) of McKesson HBOC, Inc.(McKessonHBOC) (NYSE: MCK) announced today that it has signed a three-year master agreement with IASIS Healthcare, a newly formed hospital and healthcare services company based in Franklin, Tenn. The more than $11 million contract for McKessonHBOC software solutions is considered a key strategic decision to enable the for-profit organization to meet its aggressive growth strategy.

"We need to put accurate, usable and timely information into the hands of physicians, nurses, department managers and hospital executive management teams," said Kenneth Perry, VP, Operations and Finance at IASIS Healthcare. "We are looking forward to having McKessonHBOC serve as our primary source of integrated solutions."

Sammy Cantrell, Director, Information Systems at IASIS Healthcare, added that IASIS expects to replace all of the current systems at its 15 hospitals (in Arizona, Florida, Texas and Utah) with McKessonHBOC's solutions, including the STAR 2000 hospital information system (HIS). "We chose McKessonHBOC because of its superior systems," said Cantrell. "I am familiar with McKessonHBOC's STAR 2000 platform, in particular, and consider it one of the premier integrated HIS systems in the healthcare market today."

IASIS will operate the information systems for all of its hospitals out of one data center in Phoenix, making it one of the country's first multihospital organizations to do so across all four time zones. In addition to purchasing and already implementing STAR 2000 as its core system, IASIS contracted for McKessonHBOC's revenue management suite of EC2000 electronic commerce services, Pathways Contract Management, Pathways Compliance Advisor and Pathways Decision Support solutions, along with Pathways Healthcare Scheduling and Pathways Health Network Expert.

"At a time when healthcare systems are under enormous cost and quality pressures, it is encouraging to see a start-up company using an innovative strategy to deal with these challenges," said Graham King, president of McKessonHBOC's Information Technology Business. "IASIS will succeed where others have failed because it has a very experienced and strong management team with a clear vision for the organization. A key aspect of that vision is their commitment to making the best use of technology to improve quality of care, reduce costs and ensure prompt reimbursement. We look forward to partnering with the organization as it sets out to change the landscape of healthcare."

Founded in 1998 by senior healthcare executives with extensive experience in multifacility hospital management, IASIS Healthcare currently owns and operates 15 general, acute-care hospitals in Arizona, Utah, Florida and Texas. The company is building community-focused hospital networks in high-growth markets.

McKessonHBOC, Inc., a Fortune 40 corporation, is the world's largest pharmaceutical supply management and healthcare information technology company. McKessonHBOC provides pharmaceutical supply management and information technologies across the entire continuum of healthcare, including market-leading businesses in pharmaceutical and medical-surgical distribution, information technology for healthcare providers, services for payors and outsourcing.

McKessonHBOC's Information Technology Business solutions include enterprisewide patient care, clinical, financial and strategic management software solutions, as well as Web-enabled and networking technologies, electronic commerce, outsourcing and other services to healthcare organizations throughout the world. For product information, call 1-800-981-8601 or visit the Web site at www.hboc.com.