ExactCost’s Enterprise Performance Management Solution Selected by University Physicians Healthcare at the University of Arizona

Physicians at the University of Arizona College of Medicine Faculty Based Practice Plan to Benefit from ExactCost’s Activity-Based Methods Solution

FORT LAUDERDALE and TUCSON – April 3, 2006 – ExactCost, a solutions provider that is revolutionizing healthcare cost management, today announced that University Physicians Healthcare (UPH), which supports the University of Arizona College of Medicine, University Medical Center and University Physicians Healthcare Hospital and Clinics at Kino Campus, has selected ExactCost’s Enterprise Performance Management Solution. A nonprofit corporation comprising faculty doctors at the University of Arizona College of Medicine, UPH in Tucson is the largest physicians' group in Arizona, with over 350 doctors.

UPH strives to deliver on a threefold mission, including providing medical care to patients in support of the academic programs of the University of Arizona College of Medicine; conducting medical research in pursuit of cures, better treatment, and prevention; and finally, teaching and training the future physicians of Arizona as well as providing continuing medical education for all physicians to make high-quality medical care available in Arizona. In terms of providing patient care, UPH runs the operation and supports the 350 physicians that deliver patient care. This entity includes 14 clinical departments that span the following areas: anesthesiology, emergency medicine, surgery, family practice, internal medicine/cardiology, neurology, OB/GYN, ophthalmology, orthopedics, pathology, pediatrics, psychiatry, radiation oncology and radiology. Beyond the 14 clinical service areas, UPH owns its own hospital, UPH Hospital at Kino Campus, and runs its own health plan, University Physicians Healthcare Group.

UPH first will utilize ExactCost to manage the overhead costs of its entities. The new solution will allow UPH to more accurately track actual costs incurred. ExactCost was selected for its inherent capability to enable healthcare enterprises to identify the true costs of overhead as well as other actual costs.

UPH will also use the ExactCost solution to streamline processes and identify opportunities for cost savings within each of their service areas, and will apply the solution's activity-based methods to improve performance management.

“UPH is very excited to implement this exciting and innovative approach as a way to improve its overall efficiency and ultimately reduce costs,” said Jean Tkachyk, CFO and Vice President of Operations of University Physicians Healthcare.

“This is the first faculty practice plan to adopt ExactCost’s Enterprise Performance Management solution,” said Ilan Mintz, President and CEO, ExactCost. “It is all the more significant because University Physicians Healthcare is one of the leading innovators in the healthcare industry. We appreciate that ExactCost was selected by UPH and that they saw just how activity-based methods represent cutting-edge technology for the healthcare industry.”

Another factor in UPH’s decision was that ExactCost was a solution that could be embraced without purchasing either new hardware or software due to ExactCost operating as an application service provider (ASP). And finally, the fact that ExactCost teaches the Activity-Based Costing methodology nationally for the Healthcare Financial Management Association (HFMA). This served as an additional validation point for UPH by way of lending credence to ExactCost’s domain expertise and thought leadership in the realm of cost analysis and performance management within the healthcare industry.

According to John Ortiz, ExactCost’s newly appointed Senior Vice President Performance Management Division, “This is a great opportunity for ExactCost to demonstrate the flexibility of our system to support any healthcare entity, whether the enterprise is a hospital, a free-standing imaging center or ancillary services organization, a health plan as well as physician’s practice.”

About University Physicians Healthcare
University Physicians Healthcare is a non-profit corporation created in 1985 as the medical practice of the physicians of the University of Arizona College of Medicine. Together, UPH, the University of Arizona, UPH Hospital at Kino Campus and University Medical Center combine to care for patients, educate medical students, train young physicians and conduct clinical research. With over 350 physicians and 1500 staff, UPH is Arizona's largest physicians group. Visit UPH on the Web at http://www.uph.org/.

About ExactCost
ExactCost's goal is to be the de-facto standard for Performance Management among healthcare organizations. The company plans to achieve this by providing low-risk, high-benefit cost analysis solutions that result in substantial financial, operational and strategic benefits for healthcare providers. ExactCost’s Enterprise solutions fully implement the fundamental principles of the Activity-Based Costing/Management (ABC/M) approach to performance management which provides an effective interface between strategic decision-makers and operational management in all areas of the healthcare delivery industry including Hospitals, Physician practices, free standing centers, Health Plans, and Academic Medical Centers. Currently, ExactCost has developed the detailed cost dictionaries for the most complex ancillary segments of laboratory, radiology and surgical services. For more information, visit http://www.exactcost.com/.

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ExactCost contact:
Joseph L. Artime
Senior V.P. Strategy & Markets
954-455-5665 ext. 104
joea@exactcost.com