Butler Hospital, Highmark Agree To New Contract

June 1, 2006 - (BUTLER, PA) - Butler Memorial Hospital and Highmark have reached agreement on a new contract that will establish reimbursement rates for the hospital for the next three years. The contract goes into effect July 1, 2006.

Under the agreement, Butler Memorial Hospital will continue to be available as a network hospital for Highmark’s commercial managed care and indemnity members. The new agreement establishes Highmark’s payment rates to Butler Memorial Hospital for services rendered to those members.

“We’re very pleased to have come to an agreement that both we and Highmark find to be a workable one,” said Joseph A. Stewart, President and CEO of Butler Memorial Hospital. “We look forward to continuing to work together to provide sound coverage and quality care to the Highmark subscribers in our region.”

The contracts are separate from Highmark’s agreement with the hospital under which it provides medical services to Highmark’s Security Blue, Freedom Blue and Medical Supplemental members.

“Not only are we glad to have reached agreement with Highmark for reimbursement, but we are excited about moving forward together as partners in better managing Butler County’s health,” Stewart added. “We are looking at jointly developing health management programs that will help the people of Butler County and surrounding areas manage the effects of chronic disease like diabetes and heart disease and to lead healthier lifestyles—the ultimate goal being better lives for people and better controlled health care costs.”