IBM And New York Hospitals Sign Contracts for Technology Transformation

New disaster recovery capabilities planned as well as collaboration on research projects and management of clinical applications

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NEW YORK & ARMONK, N.Y. - 26 Jun 2003: The Mount Sinai Hospital, New York University Medical Center and NYU Downtown Hospital in New York City have selected IBM to manage the organizations' core computing systems and establish a new disaster recovery/business continuity system outside Manhattan.

In connection with the contracts, which total $380 million, IBM and the hospitals will also pursue joint projects in the area of Life Sciences, such as information-based medicine and medical imaging. IBM will work closely with The Mount Sinai Hospital and NYU Medical Center to develop the strategies and infrastructure to support these programs, relying on the innovative thinkers in IBM's Research division.

"IBM's leadership in enterprise computing, combined with its deep expertise in Life Sciences, make it uniquely powerful in serving the broad spectrum of our needs," said Richard Donoghue, Senior Vice President for Strategy and Business Development at NYU Medical Center. "This new agreement will allow us to focus on doing what we do best -- treating patients and searching for the answers to complex medical challenges."

Managing Risk
IBM will provide duplicate data centers outside Manhattan to help preserve continuity in the event of a disaster or other disruption.

In addition, IBM will transform the medical centers' information technology (IT) and business infrastructure, managing and customizing the clinical applications of The Mount Sinai Hospital, including pharmacy applications and information systems. IBM will provide all three hospitals with a variable cost structure for these services, resulting in lower costs and increased flexibility to meet market changes.

IBM will also provide infrastructure services such as data center operations, voice and data networking, and end user computing.

IBM will deliver certain services -- including comprehensive IT infrastructure and operations management -- to all three hospitals on a shared basis, while services like clinical systems management will be provided on an individual basis. IBM's work with the hospitals will help them advance their clinical missions to continuously improve patient care.

"The Mount Sinai Hospital, NYU Medical Center and NYU Downtown Hospital are three outstanding hospitals, and they are engaged in some of the most important medical research in the world," said Dave Liederbach, vice president, healthcare industry, IBM. "By working closely with these three world-class medical institutions, IBM can bring its healthcare industry leadership, deep life sciences resources and investments, and on demand services capability to bear on vital scientific challenges."

The Mount Sinai Hospital is one of the nation's oldest, largest and most-respected voluntary hospitals. Founded in 1852, Mount Sinai today is a 1,171-bed tertiary-care teaching facility that is internationally-acclaimed for excellence in clinical care. Last year, more than 48,000 people were treated at Mount Sinai as inpatients, more than 84,000 received care in the emergency department, and the outpatient department recorded nearly 490,000 visits.

NYU Medical Center is one of the nation's leading academic medical centers. Located in Manhattan, NYU Medical Center is composed of the New York University School of Medicine, Tisch Hospital, and the Rusk Institute for Rehabilitation Medicine. The medical center admits approximately 35,000 patients annually and has more than 5,000 faculty members who treat patients, conduct scientific research, and train new physicians. The medical center is a major center for treating patients with cardiovascular disease, cancer, brain injury and neurological disorders, and other complex disease processes. It also is a leader in reconstructive surgery, rehabilitation medicine, transplantation, in vitro fertilization, and orthopedic care.

NYU Downtown Hospital, a 176-bed community teaching hospital, provides a life-saving presence for the diverse communities of Lower Manhattan including approximately 3 million workers, 2.5 million residents and 7.5 million annual tourists. The only hospital below Canal Street, NYU Downtown Hospital is a vital medical lifeline in an area that is home to the seat of city government, as well as the financial capital of the nation. NYU Downtown Hospital received international recognition as a frontline emergency responder of excellence during the World Trade Center disasters of 2001 and 1993. Core services include surgery, critical care, obstetrics/gynecology, medicine, cardiology, pediatrics, and geriatrics, with emphasis on outreach and ambulatory care.

IBM Global Services
IBM Global Services is the world's largest information technology services and consulting provider, generating over $36 billion in 2002. Approximately 180,000 professionals serve customers in more than 160 countries, providing the entire spectrum of customers' e-business needs -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable customers to maximize the opportunities of an on-demand business environment.

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