Medical Flexible-Staffing Management Finds Outsource Solution Nursing Shortage Prompting Innovative Approach

Chicago, IL - May 19, 2003 - The nursing shortage and declining medical reimbursement levels are proving to be a catalyst for invention within the medical community. One such invention gaining traction across the United States is the outsourcing of flexible staffing management.

Today, St. Joseph Health System - Sonoma County (SJHS-SC) announced it has contracted with InteliStaf Healthcare, Chicago, IL to manage its flexible staffing employment process. Through this agreement, InteliStaf will provide supply chain management for all of the health system, including flexible staff sourcing, regulatory documentation, and quality outcome management and reporting. Pioneered by InteliStaf nearly 6 years ago, this solution is rapidly becoming the solution of choice for medical systems.

One reason for its rapid acceptance is that the approach has been independently documented by the Nursing Executive Center of the Advisory Board, an independent think-tank located in Washington, DC to:

• Improve healthcare quality

• Reduce flexible staffing costs

• Increase core staff and flexible staff productivity

• Reduce core staff overtime

• Increase retention and recruitment of core staff

• Improve employee and patient satisfaction

• Reduce incidence of ER divert, bed closures and clinical unit bottlenecks

"Like so many healthcare systems today, we are impacted by the downturn in the economy, lower reimbursement rates, rising costs, and the shortage of medical personnel," said Kathy Campbell, Chief Nursing Officer for Santa Rosa Memorial Hospital, which is part of SJHS-SC. "We are excited about InteliStaf's ability to help us meet these challenges and positively impact our patient care."

"We are very pleased to be selected by SJHS-SC to manage their flexible staffing resources," said Ralph Friedmann, President and CEO for InteliStaf Healthcare. "They have long been leaders in healthcare innovation in Northern California and we are proud to be selected as their partner."

InteliStaf Healthcare has partnered with many leading healthcare systems across the nation to provide vendor management services. The company develops custom staffing solutions, known as "Staffing Effectiveness Partnerships," for each client based upon their specific staffing, recruitment, financial, and clinical requirements. This approach to staffing has been independently studied and is recognized by the Healthcare Advisory Board in Washington, DC as the leading staffing solution for hospitals in times of a nursing shortage.

About InteliStaf Healthcare

InteliStaf Healthcare is one of the largest healthcare staffing companies in the United States operating over 70 offices supporting over 35,000 medical professionals. The company provides nurses, allied healthcare professionals, and other medical professionals to healthcare facilities on a temporary and contract basis. InteliStaf Healthcare's travel division is the fastest growing travel staffing company in the U.S. InteliStaf is at the forefront of vendor management services, creating and directing innovative solutions designed to meet it's customers specific contract labor, patient care, and financial requirements. The company is the nationally recognized leader for such services. For more information contact Greg Bellware, Senior Vice President Business Development or visit www.intelistaf.com.

About St. Joseph Health System Sonoma County

St. Joseph Health System Sonoma County (SJHS-SC) is an integrated healthcare delivery organization sponsored by the Sisters of St. Joseph of Orange. Its mission is to improve the health and quality of life of the communities it serves. Entities include Santa Rosa Memorial Hospital, Petaluma Valley Hospital, Memorial Hospice, Hospice of Petaluma, WorkCare Occupational Health Services, Rohnert Park Healthcare Center, and St. Joseph Home Care Network. SJHS-SC¹s 2,500 employees offer residents of the Redwood Empire a spectrum of healthcare services. These include general acute care hospital services, health prevention and promotion, acute psychiatric care, hospice care, occupational health services, rehabilitation, home care, infusion services, and community benefit programs that improve the health of our communities and the quality of life in Sonoma County.

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