Pennsylvania PACE Senior Drug Program Re-awarded to First Health Services
Company signs five-year contract to administer one of the nation's largest senior drug programs

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

FOR IMMEDIATE RELEASE

DOWNERS GROVE, Illinois, January 6, 2003 – First Health Services has been re-awarded the contract to administer the Pennsylvania PACE and PACENET pharmacy benefit program for senior citizens through 2008. First Health Services has been managing the PACE/PACENET program since its inception in 1984. 

"We are honored that the Pennsylvania Department of Aging has once again chosen us to administer PACE/PACENET, one of the nation’s largest and most comprehensive senior drug programs,” said Teresa DiMarco, President of First Health Services. "We look forward to our continued work with the Department of Aging to further enhance the PACE/PACENET program to better meet the needs of enrollees, providers and the Commonwealth of Pennsylvania.” 

"To meet the challenges of the future, PACE needs new, flexible technology and expanded clinical services that will help us promote quality pharmaceutical care and fiscal integrity,” said Tom Snedden, Director of the PACE Program for the Commonwealth. "First Health’s outstanding solutions, which integrate clinical excellence, systems flexibility and operational efficiency, position us well to maintain and enhance this important benefit program that so many Pennsylvanians rely upon.”

Under the new contract, First Health will provide new, industry-leading systems and decision support tools to provide the foundation for implementation of rapid policy changes, new clinical rules, enhanced rebate administration, and outcomes analysis. Using new web-based enrollment capabilities, eligible seniors will now be able to apply for the PACE program over the Internet. The new systems and technology used to administer the program will also allow the program to comply with federal HIPAA transaction standards, privacy and confidentiality regulations. New tools for clinical and policy analysis will improve the state’s ability to identify, evaluate and change inappropriate drug utilization trends and minimize health risks for this vulnerable patient population.

Founded in Richmond, Virginia in 1968, First Health Services is one of the nation’s leading providers of health care management and administration to public sector clients, serving state Medicaid programs, health agencies, mental health agencies, pharmacy benefit programs and specialty programs for the elderly, children and other vulnerable populations. The Company is a wholly owned subsidiary of First Health Group Corp. (NASDAQ: FHCC), the premier national health-benefits services company specializing in providing large payors with integrated managed care solutions. For more information about First Health Services, visit the company website at www.fhsc.com.