First Health Awarded Fiscal Agent Contract in Nevada
Company will provide integrated health care management, technology and operations for Nevada’s Medicaid program

Contact:
Scott Allocco
First Health Services
804-965-7472
sjallocco@fhsc.com

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL,  October 02, 2002 – First Health Group Corp. (NASDAQ: FHCC) announced today that its First Health Services Corporation (FHSC) unit has been selected by the state of Nevada to implement a new Medicaid Management Information System (MMIS) and provide a full suite of fiscal agent and health care management services.

Nevada will utilize First Health Services' clinical management services, pharmacy benefit management services and its new Web-enabled Medicaid Management Information System (MMIS) to facilitate cost containment efforts, improve quality of care and maximize provider satisfaction with the Medicaid program. First Health Services has contracts with public sector health programs in 24 states and the District of Columbia.

"This important new contract affirms First Health Services Corporation as a leader in Medicaid health care administration," said Teresa DiMarco, president of First Health Services. "Our unique ability to integrate our clinical management, fiscal agent and pharmacy management expertise into programs that benefit state clients clearly distinguishes our company in this marketplace. We look forward to beginning our relationship with the State of Nevada."

Charles Duarte, Administrator of the Nevada Division of Health Care Financing and Policy said, "I've been looking for a single partner that has expertise in the clinical, operational and technological components required to successfully operate a Medicaid program. Given First Health's capabilities in all of these areas, I am extremely pleased to be moving forward with them on this important project."

First Health Services will implement its MMIS, which is modular in design, giving Nevada the flexibility it needs to rapidly adapt to new health care programs and policies. The new system will also be designed to meet the stringent security and patient privacy requirements of the Health Insurance Portability and Accountability Act (HIPAA).

Additionally, in Nevada, where access to health care providers is crucial, First Health's Web-enabled MMIS will maximize provider satisfaction by making it easier for doctors and other health care providers to participate in the Medicaid program. Medicaid providers will verify eligibility, receive authorizations and submit and track claims via the Internet. These new Web-based technologies will reduce the delays and inaccuracies of paper-based claims, reduce claims processing times and promote prompt payment to providers.

Nevada will also benefit from the implementation of new pharmacy point-of-sale, drug rebate and clinical drug utilization management programs. First Health Services' nationally recognized pharmacy benefit administration programs will enhance rebate revenues, promote appropriate drug utilization and reduce medication errors.

First Health Services is one of the nation's leading providers of health care management and administration to public sector clients. The Company serves state Medicaid programs, health and mental health agencies, pharmacy benefit programs and specialty programs for vulnerable populations. First Health Services is a pioneer in the Medicaid management field, offering a full range of health care fiscal agent, administration, management and quality assurance services. The Company is a wholly owned subsidiary of First Health Group Corp. (NASDAQ: FHCC), the nation's premier full-service health benefits company. For more information about First Health Services, visit the Company Website at www.fhsc.com.