ATLANTA, GA–(EMWNews – August 8, 2008) – Goodroe Healthcare Solutions, LLC

(http://www.goodroe.com/), a VHA company that helps hospitals improve their

clinical quality and economic performance, announced that the U.S.

Department of Health and Human Services’ Office of the Inspector General

(OIG) has approved an orthopedic and spine gainsharing project for

procedures performed by orthopedic surgeons and neurosurgeons. This is

Goodroe’s eleventh OIG approval and its first approval for an orthopedic

and spine project.

Gainsharing allows hospitals to share cost savings with participating

physicians who achieve operational efficiencies. Currently, Goodroe’s

gainsharing model is used in clinical areas where physicians control the

majority of costs, such as cardiac catheterization procedures, open heart

surgery and orthopedic and spine procedures.

While arrangements with individual hospitals vary, most allow participating

physicians to be paid as much as 50 percent of the savings generated

through increased hospital and physician collaboration to decrease overall

costs while demonstrating quality patient outcomes. Goodroe has used the

approved gainsharing methodology to identify nearly $75 million in savings

for hospitals while ensuring the best quality of care for patients.

“We are very excited because this is the OIG’s first approval for a project

involving orthopedic surgeons and neurosurgeons. This important step

demonstrates that the government is committed to expanding use of our

gainsharing methodology to improve patient care and save money,” said Joane

Goodroe, founder of Goodroe Healthcare Solutions and senior vice president

of VHA Inc.

Goodroe’s gainsharing model is based on documented patient information

collected by Goodroe’s proprietary software and database while the patient

is receiving care. The comprehensive system measures costs, identifies

waste-saving opportunities and uses nationally accepted benchmarks and

standards to assure quality patient care.

Acknowledging its continued interest in gainsharing and quality-focused

initiatives the Centers for Medicare and Medicaid (CMS) proposed an

exception to the Physician Self-Referral law (commonly referred to as

“Stark”) in the CY 2009 Medicare Physician Fee Schedule issued on July 7,

2008 for Incentive Payment and Shared Savings Programs. In that proposal,

CMS renamed gainsharing programs “shared savings programs,” proposed a set

of standards for shared savings programs and incentive programs and

outlined its philosophy requiring transparency, quality controls and

safeguards against payments for referrals. Finalizing this proposal would

be the first Stark Law guidance issued from CMS about these types of

programs.

About Goodroe Healthcare Solutions, LLC: Since 1994, Goodroe Healthcare

Solutions, a VHA company, has been on the forefront of providing

cutting-edge information management technologies and processes to help

hospitals reduce costs and improve quality. The company has been nationally

recognized for its innovative solutions that enable hospitals to increase

margins in high-cost specialty areas. In 2001, Goodroe obtained approval

for its gainsharing model from the United States Office of Inspector

General (OIG). Since this landmark decision, Goodroe has secured ten

additional approvals for gainsharing programs in hospitals throughout the

United States. To date, Goodroe has the only gainsharing model approved by

the OIG. VHA, Inc. acquired Goodroe Healthcare Solutions in October 2005 to

help its member hospitals improve their clinical and economic performance

in high-cost specialty service areas. Although Goodroe is owned by VHA,

Goodroe’s gainsharing solutions are marketed to both VHA members and

non-VHA member hospitals across the United States.