Corporate News and Events

NOVI, Michigan – Trinity Health today announced it has entered into an agreement to sell its Care Choices HMO, Care Choices PPO and Preferred Choices PPO health plans to Priority Health, a Grand Rapids, Michigan based health plan owned by three Michigan health systems (Spectrum Health in Grand Rapids, Munson Health in Traverse City and Northern Michigan Regional Health System in Petoskey).

“As we explored strategic options for Care Choices, we knew it was important for all our stakeholders to keep the southeast Michigan market competitive,” said Joseph R. Swedish, president and chief executive officer, Trinity Health. “We’re pleased that we are joining the two top-rated plans in Michigan to provide access to high quality and affordable health care. This is a positive step for Care Choices and the communities we serve.”

“We look forward to expanding our business in southeast Michigan by offering employers and providers increased choice,” noted Kimberly K. Horn, president and CEO of Priority Health. “We share Care Choices commitment to customer service and clinical quality improvement. This acquisition doubles our network of the region’s best hospitals and physicians. These providers will play a very important role in our success in this market.”

The sale is subject to regulatory approval which can take up to 120 days. It is expected the sale will be finalized early in 2007. There will be no immediate changes or interruptions to health benefits for approximately 100,000 HMO members and 43,000 PPO members currently served by Care Choices.

Commenting on the agreement, William Alvin, president and chief executive officer, Care Choices, said, “Care Choices and Priority Health are well-aligned with their vision, values and cultures built around providing excellent service and care. This will provide a strong portfolio of innovative products and new, competitive options for employers, labor, agents, brokers, members and providers in southeast Michigan.”

“We are committed to maintaining an eastern regional office in Farmington Hills,” said Horn. “This will preserve a significant number of jobs, and therefore is good for Care Choices employees and the Michigan economy.”

Care Choices delivers high-quality health care services to its members and providers, as reflected in its selection by U.S. News & World Report and the National Committee for Quality Assurance as the top rated health plan in Michigan and twelfth in the nation. Care Choices HMO offers a variety of traditional HMO benefit and pharmacy plans as well as consumer directed options. The plan’s network includes 40 leading hospitals and 6,200 physicians across southeast Michigan. Preferred Choices PPO is a network of 11,700 physicians, 83 hospitals and other health care providers for self- funded and insured clients. Care Choices PPO is designed to meet the needs of self-insured employers looking for a cost-effective, one-stop shopping solution. For more information about Care Choices, visit http://www.carechoices.com/

Priority Health is a nationally recognized health plan company based in Michigan. It serves more than 460,000 members with a broad portfolio of products including HMOs, PPOs, HSAs, Medicaid, and Medicare. Priority Health is a non-profit company governed by a volunteer board of directors. Dedicated to providing all people access to affordable health care, Priority Health ranks number two in Michigan and thirteenth in the nation by U.S. News & World Report and the National Committee for Quality Assurance. For more information about Priority Health, visit http://www.priorityhealth.com/

With hospitals in seven states, Trinity Health is one of the largest Catholic health care systems in the country. Based in Novi, Mich., the system operates 44 hospitals (29 owned, 15 managed), 384 outpatient facilities, numerous long-term care facilities, and home health offices and hospice programs. Employing approximately 45,100 full-time staff, Trinity Health reported $6.1 billion in unrestricted revenue and $307 million in community benefit ministry (excluding cost of Medicare) in fiscal year 2006. For more information about Trinity Health, visit www.trinity-health.org.