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Medstat to Provide Complete Decision Support Solution to Nevada Medicaid.

Business Editors, Health & Medical Writers

ANN ARBOR, Mich.--(BUSINESS WIRE)--Nov. 5, 2002

Medstat, a Thomson business, announced today that it has signed a multi-year agreement to provide a decision support solution to the Nevada Department of Human Resources, Division of

Health Care Financing and Policy (DHCFP) as a subcontractor to First Health Services Corporation. The DHCFP is responsible for Nevada's $800 million Medicaid program, which provides healthcare coverage for more than 160,000 Nevada residents.

"Medstat's decision support solution provides us with the power and flexibility we need to be more effective in managing our program. Advantage Suite(R) will enable us to control costs, improve access, and ensure quality in delivering healthcare to Nevada's Medicaid recipients," said Charles Duarte, Administrator for DHCFP. "Medstat has a proven reputation for being innovative and reliable in their decision support solutions, and we are looking forward to working with them."

Medstat will provide a certifiable Surveillance and Utilization Review system and a Medicaid Administrative Reporting system in partnership with First Health Services. First Health Services is implementing a Medicaid Management Information System (MMIS).

"Medstat is an outstanding business partner because of their dedication to helping customers gain results," said Teresa DiMarco, President of First Health Services.

Medstat (www.medstat.com), a Thomson business, is a health information company that provides decision support systems, market intelligence, benchmark databases, and research for managing the purchase, administration, and delivery of health services and benefits. It serves more than 1,000 organizations including many of the nation's leading employers, providers, pharmaceutical companies, government organizations, and health plans and insurance companies. Headquartered in Ann Arbor, Michigan, Medstat has a 20-year track record of delivering results for customers through innovative products, superior customer service, and outstanding people. Medstat is part of The Thomson Corporation (www.thomson.com), a global leader in providing integrated information solutions to business and professional customers with 2001 revenues of approximately US$7.2 billion. The Corporation's common shares are listed on the New York and Toronto stock exchanges (NYSE:TOC; TSX:TOC).

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