KALEIDA HEALTH ANNOUNCES SENIOR MANAGEMENT CHANGES

2002

Buffalo, N.Y., March 21, 2002 - Kaleida Health today announced three executive management changes as part of a restructuring plan to create a more efficient, responsive and financially sound hospital system that best serves the needs of the Western New York region.

William McGuire, Kaleida Health president and chief executive officer, announced that he has accepted the resignation of Executive Vice President and Chief Medical Officer Mark Shields, M.D., effective April 5; Chief Financial Officer Richard Braun, effective April 30, and Vice President, Medical Affairs Michael Noe, M.D., effective immediately.

Dr. Shields joined Kaleida in February 1999. He formerly was medical director of a 110-physician group in Aurora, Illinois. He has been instrumental in organizing Kaleida's medical staff structure and advocating for the delivery and measurement of quality patient outcomes.

Andras Vari, M.D., has been appointed interim chief medical officer. Dr. Vari has been serving as vice president, medical affairs, and medical director of Millard Fillmore Gates Circle and Suburban Hospitals.

Braun joined Buffalo General Hospital in 1990 as chief financial officer, a position he held until the Kaleida merger in 1998, when he assumed system-wide CFO responsibilities. Robert Glenning, Kaleida vice president, finance, has been named interim system CFO.

As part of the Kaleida management restructuring, Dr. Noe's position is being eliminated. Dr. Noe has been with Kaleida since 1975, as medical director at Buffalo General Hospital prior to the merger and with additional responsibilities as vice president, medical affairs, since the merger.

"We are in the process of creating a more streamlined and focused management structure as we implement significant operational improvements to make our system fiscally sound and more responsive to the needs of physicians and our patients," McGuire said. "I want to thank Mark, Rick and Mike for their years of service to Kaleida, and I wish them well in their future endeavors."

As the next step in an ongoing process to create a more efficient organization, Kaleida expects to announce additional initiatives by early April. Kaleida hired McGuire in February 2002 to lead the organization through a transformation to enhance its mission as one of the largest and most advanced health care providers in Western New York.

Kaleida Health was formed from the merger of Buffalo General Health System, The Children's Hospital of Buffalo, Millard Fillmore Health System and DeGraff Memorial Hospital. Kaleida encompasses close to 1,800 acute care beds, 557 long term care beds, more than 60 service locations and the largest home care organization in Western New York.

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Contact: Rose Caldwell, Kaleida Health Public Relations, (716) 843-7536