FOR IMMEDIATE RELEASE

Contact: Barb Meyer
Executive Director - Corporate Communications
Sisters of Mercy Health System www.mercy.net
v: 314.628-3633
f: 314.628-3734
e: bmeyer@corp.mercy.net

Sisters of Mercy Health System Leadership Changes

St. Louis, Mo. (August 18, 2006) — The Sisters of Mercy Health System (Mercy) announces the following leadership changes, which are effective immediately:

Mike McCurry has been named Vice President and Chief Information Officer for Mercy. In this role he will lead a consolidated information services division of approximately 500 information technology professionals that support the technology needs of the Health System. McCurry previously served as Vice President of Resource Optimization and President of Resource Optimization & Innovation (ROi), an operating division of Mercy. McCurry has led ROi since September 2004 and formerly served as its Chief Operating Officer. Prior to the creation of ROi in 2002, he served in materials management leadership roles for 15 years at St. John’s Health System in Springfield, Missouri, a member of the Sisters of Mercy Health System. McCurry succeeds Dick Escue.

Vance Moore has been named to succeed McCurry as Vice President of Resource Optimization for Mercy and President of Resource Optimization & Innovation (ROi), the supply chain operating division of the Sisters of Mercy Health System. He previously served as Chief Operating Officer for ROi. Moore joined Mercy and ROi in 2002 as Vice President–Performance Consulting and was named COO in 2004. As President of ROi, Moore will provide leadership for all aspects of supply chain operations across Mercy, including group purchasing, supply and equipment contracting, distribution and logistics, customer service, and performance consulting in the effective use of supplies and equipment.

--30-

About Mercy

The Sisters of Mercy Health System (Mercy) operates hospitals, physician practices, outpatient clinics, health plans and related health and human services in a seven state area including Arkansas, Kansas, Louisiana, Mississippi, Missouri, Oklahoma and Texas. Its members include 18 acute care hospitals providing more than 4,000 licensed beds, a heart hospital, a managed care subsidiary (Mercy Health Plans), physician practices, outpatient care facilities, home health programs, skilled nursing services and long-term care facilities. Services are provided by approximately 26,000 co-workers and 3,100 physicians who are employed or practice at Mercy facilities. Mercy is the ninth largest Catholic healthcare system in the United States based on net patient service revenue and is sponsored by the Sisters of Mercy–St. Louis Regional Community.

###