IBM to Operate for Childrens Hospital Los Angeles

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LOS ANGELES, CA - 12 Dec 2006: Childrens Hospital Los Angeles has signed a five-year, $13 million contract with IBM (NYSE: IBM) to manage and support the hospital's financial, human resources, materials management and grants-tracking systems.

IBM will provide outsourcing services for the hospital's PeopleSoft applications that manage medical supplies, inventory, general ledger, accounts payable, purchasing, budgetary controls, asset management, payroll and benefits. The agreement, which includes all infrastructure, network, application and help desk support responsibilities, will allow the hospital's own developers to focus on other high-priority hospital development initiatives, such as tying the clinical materials management system into the hospital's financial systems.

"These applications are the lifeline of our human resource, finance and supply chain services, and they must perform at optimum levels," said Rodney B. Hanners, senior vice president and chief operating officer for the hospital. "Our clinicians are extraordinarily talented, and we want to allow them to focus on our patients and families and not on the systems that are supposed to support them."

Childrens Hospital Los Angeles treats the sickest, most seriously injured children. It cares for more than 62,000 children a year in its Emergency Department and admits more than 11,000 children a year to the hospital. It is also one of America's premier teaching hospitals.

The Saban Research Institute of Childrens Hospital Los Angeles is among the largest and most productive pediatric research facilities in the United States, with 93 investigators involved in 200 laboratory studies, clinical trials and community-based research and health services. All of its National Institute of Health funding and research is managed through PeopleSoft.

"We wanted a partner who understood the problems hospitals like ours face, and we chose IBM as the best service provider with the technical ability to understand the system and optimize its performance to our needs," said Hanners. "IBM has already shown us that they are a forward-thinking and proactive service provider, teaming with us to solve business problems and anticipating challenges."

IBM's recent acquisitions of both Corio and Healthlink -- a leading healthcare consulting organization -- also demonstrated IBM's commitment to both healthcare industry expertise and enterprise application hosting, according to Hanners. IBM will provide operations and support services, both on site at the hospital and remotely from the IBM Shared Services Center in Edmonton, Alberta, lowering application support costs.

About Childrens Hospital Los Angeles

Founded in 1901, Childrens Hospital Los Angeles has been treating the most seriously ill and injured children in Los Angeles for more than a century, and it is acknowledged throughout the United States and around the world for its leadership in pediatric and adolescent health. Childrens Hospital is one of America's premier teaching hospitals, affiliated with the Keck School of Medicine of the University of Southern California for more than 74 years. It is a national leader in pediatric research.

Since 1990, U.S. News & World Report and its panel of board-certified pediatricians have named Childrens Hospital Los Angeles one of the top pediatric facilities in the nation. Child magazine also ranked Childrens Hospital Los Angeles among the Top Ten children's hospitals in America in its February 2005 issue.

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