LOUISVILLE, KY (January 06, 2004) - SHPS, Inc. President and Chief Executive Officer David Nelson announced today that Tom Scully has been appointed to the SHPS Board of Directors. Scully, a former Bush Administration official who headed the Centers for Medicare & Medicaid Services, is currently a Senior Advisor with Welsh, Carson, Anderson and Stowe (WCAS) and Senior Counsel for the law firm Alston & Bird. Scully's appointment is effective immediately.

"We are extremely pleased to have Tom join the SHPS team," said Nelson. "Tom brings more than two decades of health care and legislative experience to SHPS and will be a great asset to our board. We feel very fortunate to have the benefit of his talent and expertise."

As Senior Advisor for WCAS, Scully supports the firm's existing broad base of health investments and develops and evaluates new investment opportunities. At Alston & Bird, Scully focuses on health care regulatory and legislative matters as well as advising clients on health policy and strategies for health care delivery.

"I look forward to working with Dave Nelson and the rest of the board members at SHPS," said Scully. "Their integrated productivity and medical management outsourcing model is unique in an industry that is poised for growth, and I am pleased to have an opportunity to contribute to one of the top organizations in the industry."

Prior to joining WCAS and Alston & Bird, Scully was appointed by President George W. Bush to head the Centers for Medicare & Medicaid Services (CMS), where he served from 2001 through 2003. CMS manages Medicare, Medicaid, and other national health care initiatives. While at CMS, formerly known as the Health Care Financing Administration, Scully played a key role in passing Medicare reform and Medicare prescription drug legislation. He was also instrumental in making the agency more open and accountable to the public, and implemented a broad public education campaign to improve seniors' awareness and utilization of their Medicare benefits. CMS insures approximately 25 percent of the U.S. population and controls more spending than any other federal agency.

Before heading CMS, Scully served as President and Chief Executive Officer of the Federation of American Hospitals, which represents more than 1700 privately owned and managed hospitals. He is a former partner in the Washington D.C. law firm of Patton Boggs, LLP and served the first Bush administration as Deputy Assistant to the President and Counselor to the Director of the Office of Management and Budget (OMB).

Scully holds a law degree from Catholic University and a bachelor's degree from the University of Virginia.

About SHPS
SHPS provides a broad range of innovative health management tools, resources and services that empower consumers to make wise healthcare decisions. With comprehensive services that transform consumer health behaviors, SHPS’ integrated delivery system maximizes the value of consumers’ and employers’ healthcare dollars. Among its many clients, SHPS serves large and mid-sized employers, health insurance carriers, third party administrators, Medicare Part D providers and government agencies. The company employs registered nurses and health professionals, employee benefit specialists and IT experts in facilities across the United States. Visit www.shps.com.

For More Information
Sarah Bovine
Director, Corporate Communications
sarah.bovine@shps.com

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