Covenant Health System, Blue Cross and Blue Shield of Texas
Announce Agreement to Renew Relationship

Nov. 30, 2007, Lubbock, TX — Covenant Health System and Blue Cross and Blue Shield of Texas (BCBSTX) today announced they have reached an agreement to again provide in-network access to health care at all Covenant Hospitals, Covenant Rural Health Clinics in Plainview and Levelland, and Covenant Medical Group (CMG) physicians.

The agreement means BCBSTX members will be able to see their CMG physicians as in-network physicians beginning Dec. 1, 2007. All Covenant facilities and services will continue to provide health care as usual. Good faith negotiations began the day after Thanksgiving and resulted in a new contractual arrangement.

“We both agreed that it was in the best interests of Covenant Medical Group physicians and Blue Cross and Blue Shield of Texas members for us to work through these difficult issues and bring stability and partnership to the community,” said Melinda Clark, President and CEO of Covenant Health System.  “It was a series of win-win negotiations that speak highly of all the individuals involved.”

“This agreement allows us to achieve one of our primary goals for our members in Lubbock and the surrounding area — providing access to quality care in a cost effective manner," said Ted Haynes, Vice President, Network Management, Blue Cross and Blue Shield of Texas. “We are very pleased to have signed an agreement that reflects that goal and again provides Blue Cross and Blue Shield of Texas members with in-network benefits for health care delivered through Covenant Health System.”

CMG physicians will be in-network effective December 1, 2007. A new three-year contract for the Covenant Hospitals, Covenant rural health clinics in Levelland and Plainview, and all Covenant ancillary service providers continues through 2011.

Blue Cross and Blue Shield of Texas — the only statewide, customer-owned health insurer in Texas — is the largest provider of health benefits in the state, working with nearly 40,000 physicians and 400 hospitals to serve 3.7 million members in all 254 counties. Blue Cross and Blue Shield of Texas is a division of Health Care Service Corporation (HCSC), the country’s largest customer-owned health insurer and fourth largest health insurer overall. HCSC is a Mutual Legal Reserve Company and an Independent Licensee of the Blue Cross and Blue Shield Association.

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