FOR IMMEDIATE RELEASE

MHA AND NHS ANNOUNCE AFFILIATION AGREEMENT

January 17, 2006 (Florham Park, NJ): Managed Health Care Associates, Inc., the largest Group Purchasing Organization in the Alternate Site and Long Term Care Industry, announced today that it has entered into a two year affiliation agreement with National Healthcare Services, Inc. (NHS) to be their exclusive provider of GPO services for  medical, surgical, and other supply products.

National Healthcare Services, Inc. (NHS) is a regional group purchasing organization that negotiates contracts on behalf of nursing homes and assisted living facilities with a focus on dietary programs.  NHS has provided these dietary services for over six years and has 795 members throughout the Mid-Atlantic region of the country.

NHS President Joni White commented, “Our affiliation with MHA will allow us to provide our customers the most comprehensive and cost effective contract portfolio available to the extended care market. By combining our expertise in the dietary markets and the expanded MHA expertise in the alternate site arena we have the ability to offer a comprehensive portfolio to our members. We had a number of  partners to choose from and  based on the shared philosophy of both organizations in  providing unparalleled levels of customer service and solutions to reduce and control their supply costs we felt MHA was the right long term business partner for us.”

MHA Vice President of Alternate Site Services Diane Koontz, added, “MHA is extremely excited to have been selected as NHS’s key business partner. With NHS’s impeccable reputation for service within the extended care market and MHA’s strong presence in the alternate site market both organizations have the ability to expand their respective contract portfolios.   We are looking forward to building a strong partnership and offering the best service and contract portfolio to NHS along with the rest of our members as we head into 2006.”

Managed Health Care Associates, Inc. (MHA) has grown to become the market leading Alternate Site GPO and Independent Long Term Care Pharmacy Network Manager servicing the LTC Medicare D beneficiary. MHA’s success is driven by unparalleled member support, competitive contracts, and ability to create sophisticated, customized, web tools and reports, designed to increase savings and promote profitability. In addition to MHA’s core LTC pharmacy business; MHA is a leading provider of GPO services to Home Infusion pharmacies and many other specialty classes of trade. Members utilize MHA’s services to assist in the purchasing of a complete line of pharmaceuticals, medical supplies, capital equipment, and food. MHA also offers a variety of services to medical supply and pharmaceutical manufacturers including contract administration, marketing, and continuing education.

For More Information Contact:
Anthony Cilento
Corporate Communications Manager
Managed Health Care Associates, Inc.
800-642-3020 x4472
acilento@mhainc.com