| [January 25, 2006] |
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Triad, Perot Systems and McKesson Announce Multiyear Health IT Project to Transform Operations, Enhance Quality and Safety; Business and Clinical Transformation Initiative Designed to Make Healthcare Safer, More Effective
PLANO, Texas --(Business Wire)-- Jan. 25, 2006 -- Triad Hospitals, Inc. (NYSE:TRI), Perot Systems Corporation (NYSE:PER) and McKesson Corporation (NYSE:MCK) today announced a $1.3 billion healthcare information technology initiative to support Triad's clinical excellence and business transformation programs. By automating clinical, financial and administrative processes throughout its network of facilities, Triad expects to enhance the care delivery capabilities of its hospitals and provide the technology platform required to support long-term growth. Triad, through its affiliates and subsidiaries, owns and operates 49 hospitals and 10 ambulatory surgery centers in 15 states.
Perot Systems will support the transformation initiative with an IT outsourcing agreement across all Triad facilities, including Triad's corporate office. The 10 year agreement, with an expected total contract value of $1.2 billion, is highlighted by the implementation of a suite of standardized clinical, financial and enterprise resource planning (ERP) applications. Perot Systems will leverage its Clinical Solutions Center to help optimize and support the use of McKesson's Horizon Clinicals(R) suite. In addition, Perot Systems will deploy its expertise and delivery methodologies to operate Triad's technology infrastructure functions for maximum clinical effectiveness. These include applications support, network management and help desk activities, as well as, server and desktop computing. The agreement also calls for most of Triad's IT employees to become employees of Perot Systems.
McKesson Corporation will provide a wide range of its market-leading Horizon Clinicals(R) and revenue cycle software solutions through its separate, multi-year software and services contract with an expected total value of $120 million. McKesson will work with Perot Systems to develop and deploy a standardized model for McKesson solutions across all of Triad's facilities. Once implemented, Horizon Clinicals(R) will help Triad to automate key healthcare processes and make use of electronic health records to help caregivers to improve the quality, safety and efficiency of care. Triad also plans to deploy Horizon Clinicals(R) applications for the pharmacy, radiology, surgery, laboratory and emergency departments to help improve efficiency and productivity. Triad will use McKesson's revenue cycle solutions to improve business office and staff efficiency while optimizing financial performance and claims reimbursement.
The Everest Group's healthcare practice assisted Triad in several aspects of this landmark agreement, from transaction structure to supplier selection and negotiations. The Everest Group is an independent consulting firm, providing strategic advisory services and helping companies worldwide understand and maximize the power of outsourcing.
"Triad began this process, looking for information technology partners who not only shared our vision but were committed to helping us achieve it," said James D. Shelton, chairman and CEO of Triad Hospitals, Inc. "Perot Systems and McKesson have unmatched track records in designing and delivering solutions for large and complex healthcare delivery systems, which made them the right choices for us, our patients, our physicians, our associates and the communities we serve."
"We are proud that Triad has selected Perot Systems as a strategic partner to help implement its vision for long-term growth and to support its mission to continuously improve the quality of healthcare," said Peter Altabef, president and CEO of Perot Systems Corporation. "We share Triad's passion for improving healthcare and we are proud to offer our industry-leading experience and expertise to help Triad execute its transformation program."
"McKesson is honored to have the opportunity to demonstrate how the use of Horizon Clinicals(R) and revenue cycle solutions can make a significant impact on cost and quality in a large, geographically dispersed healthcare network," said Pamela Pure, president of McKesson Provider Technologies. "By helping Triad to achieve its vision, we can demonstrate not only the power of health IT, but also the expertise and commitment that McKesson can bring to a project of this scope and importance."
About Triad Hospitals, Inc.
Triad, through its affiliates, owns and manages hospitals and ambulatory surgery centers in small cities and selected larger urban markets. Triad currently operates 49 hospitals and 10 ambulatory surgery centers in 15 states with approximately 8,845 licensed beds. In addition, through its QHR subsidiary, the Company provides consulting, education, intensive resources and management services to hospitals and health systems throughout the United States. For more information, please visit www.triadhospitals.com.
About Perot Systems Corporation
Perot Systems is a worldwide provider of information technology services and business solutions. Through its flexible and collaborative approach, Perot Systems integrates expertise from across the company to deliver custom solutions that enable clients to accelerate growth, streamline operations and create new levels of customer value. Headquartered in Plano, Texas, Perot Systems reported 2004 revenue of $1.8 billion. The company has more than 17,000 associates located in North America, Europe, and Asia. Additional information on Perot Systems is available at www.perotsystems.com.
About McKesson Corporation
McKesson Corporation is a Fortune 15 healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. Over the course of its 172-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare, and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information: http://mpt.mckesson.com.
This press release contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "forecasts," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms and other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Please refer to the respective financial filings of Triad Hospitals, Inc., Perot Systems Corporation, and McKesson Corporation as filed with the U.S. Securities and Exchange Commission and available at www.sec.gov, for additional information regarding risk factors. All three companies disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.
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