NEWS RELEASE

Novation Announces Appointment of Jody Hatcher as Interim President

IRVING, TX; October 17, 2008 — Novation, the health care contracting services company of VHA Inc. and the University HealthSystem Consortium (UHC), announced today that Joellyn Willis is leaving the company to pursue other interests and Jody Hatcher is assuming the role of interim president, effective immediately.

Hatcher is a long-time leader at Novation, with nearly 20 years of experience working on behalf of VHA and UHC members. Hatcher has served as senior vice president leading key business areas, including: strategic sourcing, research, strategic planning, comparative analysis, custom services, regional contracting services, business development, alliance linkages, information technology, operational improvement and marketing. Hatcher also is a highly-visible figure within the larger health care group purchasing sector, working to raise awareness about the important value GPOs provide hospitals.

“Anyone with only a passing connection to Novation knows Jody. His friendly, personal style and deep knowledge of the GPO sector, employees, members and suppliers will ensure that Novation continues its leadership position,” said VHA President and Chief Executive Officer Curt Nonomaque.

In taking on the new role, Hatcher is focusing on areas where Novation can improve the value it provides to the health care organizations that rely on its cost-saving services – particularly during these troubling economic times.

Irene Thompson, president and CEO of UHC, said, “One of Novation’s key strengths is the depth of its seasoned management team, many of whom have spent decades in the medical supply industry and hospital operations. We appreciate all of Joellyn’s efforts to enhance Novation’s compliance program and guide operations and know Jody will build on this strong foundation to meet member and supplier needs.”

Managing more than $33 billion in contracted purchases in 2007, Novation is frequently listed as the top health care GPO in industry rankings.

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About Novation
Founded in 1998, Novation is the leading health care supply contracting company for more than 25,000 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances, and 5,500 members of Provista, LLC, representing 28,000 sites. Novation provides alliance members contract and price management and spend management services. Based in Irving, Texas, Novation develops and manages competitive contracts with more than 600 suppliers. VHA, UHC and Provista members used Novation contracts to purchased nearly $37.8 billion in 2009.

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