First Health Acquires PPO Oklahoma

Media Contact:
Erin Gardiner, Public Relations Manager
630-737-5016

Investor Contact:
Joseph E. Whitters, CFO
630-737-7511

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL – December 1, 2003 – First Health Group Corp. (NASDAQ: FHCC) announced today the acquisition of WinterBrook HealthCare Management II, LLC, and its subsidiary PPO Oklahoma, Inc. Based in Oklahoma City, PPO Oklahoma is the state’s largest independent PPO network of doctors, hospitals, and other outpatient care providers. First Health acquired the company for $10 million, subject to certain purchase price considerations, and expects to realize approximately $5 million in annual revenue.

“The acquisition of PPO Oklahoma will strengthen our network offering in Oklahoma across our client base,” said Edward L. Wristen, President and CEO of First Health. “The First Health® Network, the nation’s largest directly-contracted network, will expand substantially in Oklahoma with the addition of this leading regional network. By acquiring and integrating the PPO Oklahoma network with that of First Health’s, our clients and their employees who live, work or travel in Oklahoma will have greater access to network providers.”

The acquisition of PPO Oklahoma is consistent with First Health’s strategy of acquiring leading regional PPO networks. Since 2001, First Health has made four PPO acquisitions, namely CCN, HealthCare VALUE Management, Inc, Health Net Employer Services, Inc, and PPO Oklahoma, Inc, and expects to continue to make investments in expanding and improving the value of its national PPO network.

“We are confident that this acquisition will add to First Health’s continued growth in the group health corporate, insurance carrier, TPA and workers’ compensation sectors,” said Wristen.

PPO Oklahoma’s current clients, including third party administrators and employers, will continue to experience the benefits of local market presence and service, while having access to The First Health® Network, which includes over 425,000 providers and nearly 4,400 hospitals across the United States.

First Health contracts directly with doctors and hospitals across the country, which increases savings for clients and reduces service disruption. First Health retains 96% of its participating providers and 99% of participating hospitals each year.

First Health, the premier national health-benefits services company, specializes in providing large payors with integrated managed care solutions. First Health is a unique national managed care company serving the group health, workers’ compensation and state agency markets. Using technology to enable service and managed care innovations, First Health sets the bar for industry performance. For more information, visit the company website at www.firsthealth.com.