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Prime Healthcare Services Inc. Selects Premier Healthcare Alliance to Enhance Public Reporting - June 01, 2008

Prime Healthcare Services, Inc ("PHS") of Victorville, Calif., has signed an agreement with the Premier healthcare alliance to employ Quality Measures Reporter(TM) to meet public inpatient and outpatient regulatory reporting requirements for its nine hospitals in California (see also Premier Inc.).

Prime Healthcare will deploy Quality Measurers Reporter at Centinela Hospital Medical Center, Inglewood; Chino Valley Medical Center, Chino; Desert Valley Hospital, Victorville; Huntington Beach Hospital, Huntington Beach; La Palma Intercommunity Hospital, La Palma; Montclair Hospital Medical Center, Montclair; Paradise Valley Hospital, National City; Sherman Oaks Hospital, Sherman Oaks; and West Anaheim Medical Center, Anaheim.

"Prime Healthcare Services strives to achieve highest quality of patient care standards at all of its affiliated hospitals," said Prem Reddy, MD, FACC, FCCP, PHS' Chairman of the Board, "yet in a compassionate and cost-effective manner."

After reading your communication regarding bills sent by Prime Healthcare Services (“Prime”) which was posted on Kaiser Permanente’s (“Kaiser”) website on May 8, 2008, I came to the conclusion that you are either totally ignorant as to the actual facts surrounding the dispute between Prime and Kaiser or your letter is yet another example of Kaiser’s attempt to distort the truth so as to avoid facing the consequences of its own wrongful conduct. In this regard, I have the following observations and questions:

Desert Valley Hospital, Prime Healthcare's flagship hospital, was one of 49 hospitals nationwide to win a 2007 Premier - CareScience Select Practice National Quality Award for superior patient outcomes in both quality and efficiency of care. The award recognizes the top 1 percent of the more than 4,700 acute care inpatient facilities in the U.S. eligible to receive the award. Winners were identified as a top performer in quality and efficiency among all acute care facilities in MEDPAR data, regardless of bed size or teaching status.

Quality Measures Reporter is a single-source solution that allows hospitals to collect, submit and analyze data to measure clinical quality for compliance with national and state regulatory agencies, such as the Centers for Medicare & Medicaid Services, The Joint Commission and pay-for-performance reimbursement initiatives.

Quality Measures Reporter captures and reports on more data at the physician and nursing unit level than any other product, enabling hospitals to track performance against national benchmarks and identify performance opportunities to increase clinical quality and efficiency, ensuring performance-based reimbursement and protecting market share.

The reporting tool is integrated into the Premier Performance Suite(TM), which includes benchmarking, reporting analysis and real-time surveillance of clinical, safety, financial, operational, labor productivity and supply data.

About Prime Healthcare Services, Inc.

Prime Healthcare Services Inc., Victorville, Calif. is a progressive, innovative and rapidly expanding hospital management company in Southern California. The PHS mission is to provide comprehensive quality healthcare in a compassionate, convenient and cost-effective manner. With more than 6,000 employees, PHS currently owns and operates nine acute care hospitals in California: Centinela Hospital Medical Center in Inglewood (370 beds), Chino Valley Medical Center in Chino (126 beds), Desert Valley Hospital in Victorville (83 beds), Huntington Beach Hospital in Huntington Beach (141 beds), La Palma Intercommunity Hospital in La Palma (131 beds), Montclair Hospital Medical Center in Montclair (102 beds), Paradise Valley Hospital in National City (301 beds), Sherman Oaks Hospital and the Grossman Burn Center in Sherman Oaks (153 beds), and West Anaheim Medical Center in Anaheim (219 beds). For more information please visit www.primehealthcare.com.

©2008 Prime Healthcare Services, Inc. All rights reserved.