Sutter Health and Health Net of California Announce New Multi-Year Agreement

SACRAMENTO, Calif., Sept. 29, 2003 — Health Net of California and the not-for-profit Sutter Health network of community-based hospitals and doctors in Northern California announced today that they have reached agreement on a new multi-year contract. The new agreement becomes effective January 1, 2004 and ensures continued, uninterrupted coverage for the more than 134,000 Health Net members who use Sutter medical groups and an estimated 150,000 Health Net members who access Sutter hospitals.

The new contract provides Health Net commercial and Medicare+Choice members continued access to Sutter Health's Northern California hospitals and medical groups. Financial terms of the agreement were not disclosed.

In a joint statement, Sutter Health CEO Van R. Johnson and Health Net of California President Chris Wing said, "This is good news for our members and patients who count on maintaining their health care provider relationships. We're pleased to continue to strengthen our collaborative relationship with the goal of providing affordable quality care for our members and patients."

Health Net of California, a subsidiary of Health Net, Inc. (NYSE:HNT), is one of the largest network-model health plans in the state, serving nearly 2.5 million members statewide. It contracts with more than 44,000 physicians, nearly 400 hospitals, and more than 4,300 pharmacies, giving its members greater choice and more convenient access to care. Its commercial lines of business have received "Excellent" and its Medicare lines of business have received "Commendable" accreditation status from the National Committee for Quality Assurance. For more information about Health Net, visit its award-winning Web site at www.health.net.

Sutter Health is one of the nation's leading not-for-profit networks of community-based health care providers, delivering high-quality care in more than 100 Northern California communities. Sutter Health is the regional leader in infant deliveries, neonatology, orthopedics and pediatric services. It supports more than two dozen locally governed acute care hospitals and physician organizations, as well as medical research facilities, region-wide home health, hospice and occupational health networks, and long-term care centers.

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Contact
Karen Garner
(916)286-8297
garnerk@sutterhealth.org