First Health Services Restores Service to Maryland Medicaid Pharmacy Claims Processing System

FOR IMMEDIATE RELEASE
Contact: Scott Allocco
First Health Services
202-255-3119
sjallocco@fhsc.com

Richmond, VA (September 15, 2003) 9am—First Health Services reports that it has restored service to the Maryland Medicaid pharmacy claims processing system as of 8:30 AM. Due to a computer hardware failure last week, the company’s Maryland pharmacy claims processing system had been “off-line” since late Thursday afternoon.

"We sincerely apologize to the Medicaid recipients and pharmacists in Maryland who were inconvenienced during this period,” said Teresa DiMarco, President of First Health Services. “We are committed to taking every appropriate action to ensure that such an equipment failure does not cause a service interruption again.”

Experts at First Health Services worked around the clock to get the system back on-line as quickly as possible. The company engaged national experts and consultants to assist with this system recovery effort. In addition, FHS brought in additional 24x7 call center operators to respond to pharmacies questions, and made outreach calls to inform pharmacies of the state's interim procedures for filling patient prescriptions and checking eligibility.

The senior leadership of the company remains in close contact with State Health Secretary Nelson Sabatini and his management team at the MD Department of Health and Mental Hygiene to ensure that impacts to pharmacists and patients are minimized.

The company is also working with pharmacies to update them on the status of the claims system and the policies they should be following concerning claims payment. If pharmacies have questions, they should call FHS at 1-800- 884-3238.

First Health Services is a wholly owned subsidiary of First Health Group Corp. (NASDAQ: FHCC), in Downers Grove, IL.