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GNYHA Ventures Retains Giuliani Partners to Oversee Process for Selecting Business Partner for Group Purchasing of Medical Products
Former Mayor's Firm to Help Hospital Group Conduct Rigorous Evaluation of Competing Group Purchasing Organizations

October 13, 2003 - New York, NY. GNYHA Ventures, Inc., a subsidiary of the Greater New York Hospital Association (GNYHA), has retained Giuliani Partners LLC, to oversee the company's process for selecting a business partner for group purchasing of medical/surgical and pharmaceutical supplies on behalf of nearly 100 not-for-profit hospitals throughout the New York and New Jersey area.

"Greater metropolitan hospitals provide world-class medical care to millions of people, train the next generations of doctors, and stand ready in times of crisis," said Rudy Giuliani, CEO of Giuliani Partners. "They also face tremendous cost pressures, and I am very enthusiastic about this unique opportunity to help GNYHA Ventures choose a business partner that will help their hospital members continue to reduce supply costs while providing the very highest-quality patient care."

By aggregating the medical and pharmaceutical purchasing of multiple hospitals, group purchasing organizations (GPOs) obtain significant price discounts for participating hospitals and result in significant savings. A recent national study found that hospital and health system executives estimate that GPOs save their institutions an average of 10.4% on supply costs. GNYHA Services, Inc., a subsidiary of GNYHA Ventures, has offered group purchasing services to health care facilities in the metropolitan area since the 1970s. In 1996, GNYHA Services signed a seven-year contract for a purchasing arrangement with Premier Inc., a national GPO, under which GNYHA Services markets Premier's contracts for medical/surgical supplies and pharmaceuticals. The GNYHA Services/Premier relationship currently has 95 hospital participants and has a total annual purchasing volume of approximately $2.3 billion. The contract between GNYHA Services and Premier ends in June 2004, and therefore GNHYA Services is now beginning the process of selecting its purchasing partner for 2004 and beyond. GNYHA Services will be considering proposals from its current partner, Premier, as well as a number of other competing GPOs.

"Our group purchasing business is extremely important on many fronts," said Kenneth E. Raske, President of GNYHA. "In a time of severe economic pressure, it helps hospitals get the lowest prices on needed products and purchase those products as efficiently as possible. The business also helps generate revenue that supports the trade association's multifaceted advocacy, research, and policy analyses on behalf of its membership. We are looking forward to working with Giuliani Partners to assist us in conducting a rigorous evaluation of competing GPOs and selecting the most qualified business partner for our needs."

Steven D. Oesterle, Managing Director of Giuiliani Partners and a former Vice Chairman at Ernst and Young LLP, and a team from Giuliani Partners will oversee and provide advice on the evaluation process, which is being conducted by a Committee comprised of GNYHA hospital executives, management, and staff. The evaluation process will include reviewing proposals submitted by a number of GPOs, meeting with key staff at each GPO, and conducting focus groups with hospitals to better understand their purchasing priorities. Evaluation criteria will include the ability to secure the lowest prices from medical product vendors, contracts with the best product vendors, the ability to add innovative products and new technologies to the portfolio, an agreement that allows flexible local contracting when appropriate, technology that allows participants to access "real time" pricing information, and the company's overall financial strength and capabilities as well as its commitment to a strong code of conduct regarding its approach to purchasing. GNYHA Ventures expects to make its selection at the end of the first quarter of 2004.

"Our goal is to choose the organization that not only offers the best products at the lowest prices but that also has the best understanding of the New York-New Jersey region’s unique marketplace, which has more large, sophisticated health care institutions than any other area of the country," said Lee H. Perlman, President of GNYHA Ventures. "To help select the best partner, we wanted to work with an independent consulting firm whose name is synonymous with integrity. Giuliani Partners fits that description."

About Giuliani Partners
Giuliani Partners is a consulting firm formed by former New York City Mayor Rudolph W. Giuliani and a number of his senior executives from his eight-year tenure. Giuliani Partners assists chief executive officers in securing the future of their firms by protecting their knowledge, financial and physical assets, their people and their brand.

With Mr. Giuliani as Chairman and CEO, the firm draws upon its experience and expertise in innovative financial management, public safety, security, emergency preparedness, business continuity and leadership during crises. This team includes former Corporation Counsel Michael Hess, New York City's former Police Commissioner Bernard Kerik, former Fire Commissioner Thomas Von Essen, former Office of Emergency Management Commissioner Richard Sheirer, former Vice Chairman of Ernst and Young Steven Oesterle as well as other former city officials. Giuliani Partners provides clients with a comprehensive set of solutions addressing critical concerns of major corporations today.

About GNYHA Ventures
GNYHA Ventures, a business subsidiary of the Greater New York Hospital Association (GNYHA), manages an array of health care services, consulting, and group purchasing programs. GNYHA is a trade association that was founded in 1904 and currently represents more than 250 not-for-profit hospitals and continuing care facilities, both voluntary and public, in the metropolitan New York area and throughout the State, as well as in New Jersey, Connecticut, and Rhode Island. The purpose of GNYHA is to act as the principal advocate for its members in improving the access to, as well as the quality and cost of, health care, and to foster an appropriate environment for the management of health care resources.