FOR IMMEDIATE RELEASE

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

Mercy Health Plans Announces Leadership Change

St. Louis, MO (April 26, 2004) — Tom Kelly, president/CEO of Mercy Health Plans, Inc. (MHP), since its inception in 1994, will resign from this position June 21 to accept a new position as executive vice president of DaVita, a national provider of dialysis services headquartered in southern California. Michael Murphy, MHP’s chief operating officer, will become president and CEO effective upon Tom’s departure. Mercy Health Plans is a member of the Sisters of Mercy Health System and operates health plans in three regions: St. Louis and Springfield, Missouri, and Laredo, Texas.

“Tom’s leadership in the development and management of MHP has been invaluable. During MHP’s 10-year history, it has grown to more than 230,000 members, 400 co-workers and nearly $600 million in revenue, with a variety of health plans serving commercial, Medicare and Medicaid/CHIP members,” said Ron Ashworth, president and chief executive officer of the Sisters of Mercy Health System.

Murphy joined MHP in 1996 as vice president of government programs and was instrumental in establishing and leading MHP’s managed care programs for Medicare and Medicaid members. He was named COO in 2002. Prior to joining MHP, Michael founded and served as president/CEO of Managed Prescription Services, a St. Louis-based pharmacy benefits management company, from 1985 to 1993.

“Michael’s past experience and his tenure with MHP position him for continued success in this new leadership role,” said Ashworth.

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 10th largest Catholic health care system in the U.S. based on net patient service revenue and is sponsored by the Sisters of Mercy–St. Louis Regional Community.

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