First Health Completes Acquisition of CCN;
Patrick G. Dills Named CCN President

Edward L. Wristen, President and COO
or
Joseph E. Whitters, CFO
First Health
630-737-7511

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL – August 16, 2001 - First Health Group Corp. (NASDAQ:  FHCC) today completed its acquisition of CCN, a national managed care company based in San Diego, CA.  The company also announced that Patrick G. Dills, First Health’s Executive Vice President of Sales, has been appointed President of CCN.

First Health reached a definitive agreement this past May to acquire CCN from HCA (NYSE: HCA) in a cash transaction valued at $195 million.  The acquisition will expand the Company’s position as an industry leader in the workers’ compensation, group health and auto managed care areas, and add significantly to the national reach of The First Health® Network.

“I am very excited about bringing CCN into our family of managed care businesses,” said James C. Smith, Chairman and CEO of First Health.  “The addition of CCN is a natural complement to our current services, and strengthens our position in the workers’ compensation, group health and auto markets.”

Mr. Dills will assume the leadership of CCN effective today.  Since joining First Health in 1988, Mr. Dills has focused on delivering dynamic revenue growth, especially within the insurance carrier, third party administrator and workers’ compensation markets.  In addition, he is Chairman of the Program Advisory Board for the Workers Compensation Research Institute, an independent, not-for-profit research organization providing information about public policy issues involving workers’ compensation systems.  Mr. Dills earned a bachelor’s degree in economics from the University of Pennsylvania’s Wharton School. 

“Pat Dills has played an important role in First Health’s success for 13 years,” said Edward L. Wristen, President and COO.  “His knowledge, experience and dynamic leadership can take CCN to the next level.”

Over the next several quarters, First Health will begin integrating various operations and expects to realize many cost synergies through the companies’ respective strengths.  The acquisition will be neutral to Company earnings over the last half of 2001.  First Health anticipates considerable accretion in 2002 and 2003.  Earnings-per-share (EPS) growth for 2002 is expected to be approximately 20 percent.

CCN is a non-risk managed care company offering workers’ compensation, group health and auto injury management programs that reduce total claims costs – medical, indemnity and legal – while improving health care outcomes.  Approximately 32 million people in 50 states and the District of Columbia benefit from CCN programs and services.  CCN manages more than $6 billion in health care costs annually.  CCN can be found on the Internet at www.ccnusa.com.

First Health, the nation’s premier full-service health benefits company, specializes in providing large employers with one integrated source for group health and workers’ compensation.  By combining pioneering technology with expert industry knowledge, First Health delivers comprehensive, cost-effective solutions for its clients nationally.  For more information, visit the company web site at www.firsthealth.com.