Scripps Health and North American Medical Management Form Joint Venture to Develop Integrated Delivery Network

San Diego — Scripps Health and North American Medical Management, California, Inc. (NAMM), a member of the Aveta Inc. family of companies, announced today that they have entered into an agreement to form Scripps Integrated Delivery Network Management, LLC. (Scripps IDN), a joint venture to develop an integrated health care delivery network in San Diego County. The Scripps IDN will support the alignment of patients, hospitals, providers and payers in promoting care coordination.

“It is clear that changes occurring in health care require health systems and physicians to find innovative ways to work together to deliver coordinated care to both improve quality and contain costs,” said Chris Van Gorder, president and chief executive officer of Scripps Health. “In partnership with our physicians, Scripps has already begun transforming the way we deliver care to our patients. NAMM shares our vision of patient-centered care and we believe that together as the Scripps IDN we will create comprehensive models of care delivery that allow us to meet the needs of patients across the San Diego region.”

“NAMM is very pleased to forge a partnership with Scripps, a health system with a nationally renowned reputation for quality and commitment to patient care,” noted Leigh Hutchins, president and chief operating officer of NAMM. “Though the ideal delivery model under health care reform is still under considerable debate, we are confident that the solid clinical, financial, and management foundation that will be represented in the Scripps IDN, along with the geographic scope of outreach, will provide a flexible platform to accommodate what may eventually emerge from health care reform.”

The Scripps IDN will build the infrastructure required to allow Scripps Health and NAMM affiliated physician groups to respond to alternative care management arrangements. Such arrangements may include commercial and Medicare/Medi-Cal accountable care organizations, bundled payments, capitation and other quality incentive models.

The physician groups currently involved in the Scripps IDN are:

• Scripps Coastal Medical Group
• Scripps Clinic Medical Group
• Scripps Mercy Physician Partners Medical Group
• XIMED Medical Group
• Connect-the-Docs
• Mercy Physicians Medical Group
• Primary Care Associates Medical Group

The physicians in these groups will play an integral role in the development and evolution of this new organization.

Learn more about Scripps Health, a nonprofit integrated health system in San Diego, Calif.

North American Medical Management California, Inc. (NAMM) develops and manages provider networks, offering a full range of services in Southern California to assist physicians and other provider organizations in patient care coordination and business operations.

NAMM brings together 14 physician organizations including the PrimeCare IPAs, Mercy Physicians Medical Group, Coachella Valley Physicians, and Primary Care Associates – a network that includes over 500 primary care physicians and 1,000 specialists serving more than 44,000 senior members and 185,000 commercial members.

For more information, visit www.nammonline.com.

NAMM is part of the Aveta Inc. family of companies – one of the largest providers of managed healthcare services in the United States. Redefining healthcare management to meet the challenges of today’s complex healthcare environment, Aveta develops innovative models that coordinate care for more than 250,000 Medicare beneficiaries and more than 285,000 commercial members, Aveta builds provider networks and Medicare Advantage programs that are sustainable, cost-effective and utilize advanced technologies.

The company is headquartered in Fort Lee, New Jersey, and currently has operating subsidiaries in California, Illinois, Arizona, Kansas City and Puerto Rico. For more information, visit www.aveta.com.