Tri-Lakes Medical Selects PHNS for Revenue Cycle Improvement; Regional Service Center to Be Built in Batesville, Mississippi.

DALLAS -- Tri-Lakes Medical Center ("TLMC") of Batesville, Mississippi has signed a 10-year agreement to have PHNS manage all aspects of the hospital's revenue cycle. PHNS will be responsible for TLMC's admissions, registration, medical records and health information management, information technology, and billing and collection functions. PHNS was selected for its commitment to community hospitals and its unique service offerings for community hospitals.

Ray Shoemaker, Tri-Lakes Medical Center's CEO, said, "Tri-Lakes Medical Center is pleased to have entered into a long-term services relationship with PHNS, one of the nation's leading providers of information technology, health information management, and business office services." Mr. Shoemaker added, "PHNS and Tri-Lakes Medical Center will develop state of the art services programs in Batesville, Mississippi to benefit the community, which will add 75-150 jobs over the life of this affiliation. The partnership will afford Tri-Lakes Medical Center the opportunity to accelerate its strategic plan to become the premier healthcare provider in Mississippi."

"PHNS will draw from the full breadth and depth of its infrastructure services to help TLMC meet the challenging needs of a rapidly growing community hospital with a vision to change the state of healthcare in Mississippi," said Chick Young, Chairman of the Board and CEO of PHNS. "PHNS is committed to ensuring that community hospitals have access to the same resources and services PHNS has developed and provides for its multi-billion dollar healthcare clients'," said Mr. Young.

PHNS and TLMC will jointly build a regional service center in Batesville, Mississippi to allow community hospitals in Mississippi, Alabama, Arkansas and Tennessee to draw from the resources, expertise and leverage created in the contractual relationship between TLMC and PHNS.

About Tri-Lakes Medical Center: "Quality is no accident!" Tri-Lakes Medical Center exists to meet the healthcare needs of the community. TLMC's work is their passion. TLMC is dedicated to serving their patients as they would their own family, with respect for life in all stages. In a spirit, they relentlessly pursue continuous improvement, compassion, and quality care for all they serve. Tri-Lakes Medical Center is a 121,000 sq. ft. acute medical facility built in 2001 on 25 acres in Batesville, Mississippi. Tri-Lakes Medical Center is licensed for 93 beds including Behavioral/Acute/LTAC/Swing Bed/ICU Care. Tri-Lakes Medical Center strives to meet the needs of everyone in the community and they are always looking for additional services to offer.

About PHNS: PHNS provides comprehensive healthcaring solutions for hospitals including revenue cycle management, information technology, health information management (including medical record management and storage, transcription, coding, release of information and electronic medical record services), receivables management, and interim and contract management services. Serving more than 400 U.S. hospitals nationwide, PHNS creates business-healthy hospitals by improving operations, enhancing technology and increasing cash on hand. This allows hospitals to focus on their core competency -- patient care. PHNS is a national healthcare Services Company headquartered in Dallas, Texas. See www.phns.com for additional information about PHNS.