Sutter Health Announces Health Plan Contract Status for 2002

August 14, 2001

SACRAMENTO, CA - As many Northern California businesses prepare for annual health plan open enrollment sessions for their employees, the Sutter Health network of physicians and not-for-profit hospitals today issued a status report on contracts with HMOs and health plans for 2002.

Sutter Health has existing contracts in place for 2002 with the following major health plans:

• Blue Shield
• Blue Cross
• Pacificare
• Cigna
• Aetna

In addition, Sutter has agreements with major preferred provider organizations and smaller health plans.

Sutter Health has not reached a contract with Health Net (NYSE:HNT) for 2002. Negotiations with Health Net are ongoing, and Sutter Health officials expressed hope that an agreement can be reached before the current contract expires December 31, 2001.

"Sudden changes in health plan provider networks can be disruptive and frightening to patients and their families," said Dr. Gordon Hunt, Chief Medical Officer for Sutter Health. "Consumers need to know early on - before they've signed up for health coverage - which HMOs and health plans include us in their provider networks and which ones don't include Sutter Health hospitals and physicians."