VHA Signs IT Outsourcing Agreement With First Consulting Group

Apr 25, 2001, 01:00 ET from VHA Inc.

    IRVING, Texas, April 25 /PRNewswire/ -- Reflecting the growing demand for
 IT outsourcing among health care providers, VHA has signed an IT outsourcing
 agreement with First Consulting Management Services, a subsidiary of
 First Consulting Group Inc. (Nasdaq:   FCGI).  The agreement brings an
 additional option to the table for VHA members that are needing experienced IT
 outsourcing resources.
     Under the terms of the five-year agreement, VHA members can contract with
 FCG to design, customize and deliver full and discrete IT outsourcing
 services.  The new outsourcing agreement follows and complements a multi-year
 agreement signed last year that enables VHA members to use FCG for IT
 consulting services.  The new agreement positions FCG as the primary IT
 outsourcing option for VHA members, and VHA will  continue to support an
 existing agreement with Eclipsys Corp. that also covers IT outsourcing.
     The new agreement gives VHA member hospitals enhanced value on FCG's broad
 base of IT outsourcing professional and technical services; enabling members
 to better align IT objectives with business goals, control costs, increase
 predictability, and improve service levels, while maintaining focus upon their
 primary mission of delivering quality patient care.  The agreement also
 includes performance requirements that put First Consulting's fees at risk if
 the requirements are not met.
     In 2001, VHA members will spend between $75 million to $100 million on
 outsourced IT services.
     Curt Nonomaque, executive vice president at VHA, said, "Market pressures,
 such as shortages of qualified people to fill vacancies, are driving members
 to seek IT outsourcing options, and we believe VHA members now have two very
 solid IT outsourcing options under contract in First Consulting and Eclipsys."
     Don McCall, senior vice president at VHA, commented, "VHA is committed to
 supporting member hospitals as they work constantly on their core mission,
 which is improving patient care while carefully managing costs."  He added,
 "In many cases, outsourcing some or all of the IT functions can help alleviate
 a major financial or organizational burden for health care executives who
 already have their plates full."
     FCG President Steve Heck said, "We're proud to have been chosen as an IT
 outsourcing provider for members of VHA.  The health care industry is rapidly
 embracing IT outsourcing as a way to achieve greater returns from IT
 investments and acquire access to skilled personnel and state-of-the-art
 technology.  We look forward to putting our expertise in these areas at the
 service of VHA's members."
 
     About VHA
     VHA Inc. is a nationwide network of more than 2,200 leading
 community-owned healthcare organizations and their affiliated physicians.  The
 VHA alliance comprises 27 percent of the nation's community hospitals,
 including many of the nation's largest and most respected institutions.  VHA
 offers programs and services to improve financial and clinical performance,
 and as a cooperative distributes income annually to members based on their
 participation.  In January 2001, VHA was named one of the "100 Best Companies
 to Work For," for the second consecutive year by Fortune.  More information is
 available at VHA's website, www.vha.com.
 
     About First Consulting Group
     First Consulting Group is a leading provider of information-based
 consulting, integration and management services for healthcare, pharmaceutical
 and other life sciences organizations in North America and Europe.  The firm's
 services are designed to increase its clients' operations effectiveness,
 resulting in reduced costs, improved customer service, enhanced quality of
 patient care and the more rapid introduction of new pharmaceutical compounds.
 More information about FCG is available through the FCG World Wide Web site at
 www.fcg.com or by calling the toll free number 800-345-0957.
 
     Except for the historical information contained herein, this news release
 contains forward looking statements, including, without limitation, statements
 containing the words "believes," "anticipates," "expects" and words of similar
 import.  Such forward-looking statements involve known and unknown risks,
 uncertainties and other factors which may cause the actual results,
 performance or achievements of the Company, or industry results, to be
 materially different from any future results, performance or achievements
 expressed or implied by such forward-looking statements.  Such factors
 include, among others: the ability to attract and retain a sufficient number
 of qualified employees, specialized risks created by international operations,
 variability of net revenues and operating results, potential inability to
 generate additional revenue from existing clients in the healthcare,
 pharmaceutical and life sciences industries, management of the Company's
 growth, integration of acquired businesses and personnel, dependence on key
 employees, control by existing stockholders and management and other factors
 referenced in First Consulting Group, Inc.'s annual report on Form 10K and
 quarterly reports on Form 10Q as filed with the Securities and Exchange
 Commission.
 
      Contact:
      Lynn Gentry
      972/830-0798
      lgentry@vha.com
 
      Steven Heck
      President
      First Consulting Group
      972-869-9977
      sheck@fcg.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X76547713
 
 

SOURCE VHA Inc.
    IRVING, Texas, April 25 /PRNewswire/ -- Reflecting the growing demand for
 IT outsourcing among health care providers, VHA has signed an IT outsourcing
 agreement with First Consulting Management Services, a subsidiary of
 First Consulting Group Inc. (Nasdaq:   FCGI).  The agreement brings an
 additional option to the table for VHA members that are needing experienced IT
 outsourcing resources.
     Under the terms of the five-year agreement, VHA members can contract with
 FCG to design, customize and deliver full and discrete IT outsourcing
 services.  The new outsourcing agreement follows and complements a multi-year
 agreement signed last year that enables VHA members to use FCG for IT
 consulting services.  The new agreement positions FCG as the primary IT
 outsourcing option for VHA members, and VHA will  continue to support an
 existing agreement with Eclipsys Corp. that also covers IT outsourcing.
     The new agreement gives VHA member hospitals enhanced value on FCG's broad
 base of IT outsourcing professional and technical services; enabling members
 to better align IT objectives with business goals, control costs, increase
 predictability, and improve service levels, while maintaining focus upon their
 primary mission of delivering quality patient care.  The agreement also
 includes performance requirements that put First Consulting's fees at risk if
 the requirements are not met.
     In 2001, VHA members will spend between $75 million to $100 million on
 outsourced IT services.
     Curt Nonomaque, executive vice president at VHA, said, "Market pressures,
 such as shortages of qualified people to fill vacancies, are driving members
 to seek IT outsourcing options, and we believe VHA members now have two very
 solid IT outsourcing options under contract in First Consulting and Eclipsys."
     Don McCall, senior vice president at VHA, commented, "VHA is committed to
 supporting member hospitals as they work constantly on their core mission,
 which is improving patient care while carefully managing costs."  He added,
 "In many cases, outsourcing some or all of the IT functions can help alleviate
 a major financial or organizational burden for health care executives who
 already have their plates full."
     FCG President Steve Heck said, "We're proud to have been chosen as an IT
 outsourcing provider for members of VHA.  The health care industry is rapidly
 embracing IT outsourcing as a way to achieve greater returns from IT
 investments and acquire access to skilled personnel and state-of-the-art
 technology.  We look forward to putting our expertise in these areas at the
 service of VHA's members."
 
     About VHA
     VHA Inc. is a nationwide network of more than 2,200 leading
 community-owned healthcare organizations and their affiliated physicians.  The
 VHA alliance comprises 27 percent of the nation's community hospitals,
 including many of the nation's largest and most respected institutions.  VHA
 offers programs and services to improve financial and clinical performance,
 and as a cooperative distributes income annually to members based on their
 participation.  In January 2001, VHA was named one of the "100 Best Companies
 to Work For," for the second consecutive year by Fortune.  More information is
 available at VHA's website, www.vha.com.
 
     About First Consulting Group
     First Consulting Group is a leading provider of information-based
 consulting, integration and management services for healthcare, pharmaceutical
 and other life sciences organizations in North America and Europe.  The firm's
 services are designed to increase its clients' operations effectiveness,
 resulting in reduced costs, improved customer service, enhanced quality of
 patient care and the more rapid introduction of new pharmaceutical compounds.
 More information about FCG is available through the FCG World Wide Web site at
 www.fcg.com or by calling the toll free number 800-345-0957.
 
     Except for the historical information contained herein, this news release
 contains forward looking statements, including, without limitation, statements
 containing the words "believes," "anticipates," "expects" and words of similar
 import.  Such forward-looking statements involve known and unknown risks,
 uncertainties and other factors which may cause the actual results,
 performance or achievements of the Company, or industry results, to be
 materially different from any future results, performance or achievements
 expressed or implied by such forward-looking statements.  Such factors
 include, among others: the ability to attract and retain a sufficient number
 of qualified employees, specialized risks created by international operations,
 variability of net revenues and operating results, potential inability to
 generate additional revenue from existing clients in the healthcare,
 pharmaceutical and life sciences industries, management of the Company's
 growth, integration of acquired businesses and personnel, dependence on key
 employees, control by existing stockholders and management and other factors
 referenced in First Consulting Group, Inc.'s annual report on Form 10K and
 quarterly reports on Form 10Q as filed with the Securities and Exchange
 Commission.
 
      Contact:
      Lynn Gentry
      972/830-0798
      lgentry@vha.com
 
      Steven Heck
      President
      First Consulting Group
      972-869-9977
      sheck@fcg.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X76547713
 
 SOURCE  VHA Inc.