Buffalo, NY, June 25, 2002 - William L. Joyce of Amherst, partner at Strategic Investments & Holdings, Inc., was elected chair of the Kaleida Health Board of Directors today at the health system's fourth Annual Meeting at the Albright- Knox Art Gallery. Joyce heads a newly restructured board at Kaleida, reduced in size from 30 to 12 voting members.

Other board officers elected at the Annual Meeting include Edward F. Walsh, Jr., vice chair; Brian J. Lipke, vice chair/treasurer, and Ann G. Badding, secretary.

Walsh is president and chief operating officer of Walsh Duffield Companies, Inc., a Buffalo insurance firm. Lipke is chairman and chief executive officer of Gibraltar Steel. Badding is retired manufacturing executive for Nabisco-Kraft Foods.

Other directors elected to the Kaleida board include Thomas R. Beecher, Jr., Carol A. Jackson-Gibson, M.D., A. Norman Lewin, M.D., Gerald S. Lippes, Hon. James A.W. McLeod , James P. Nolan, M.D., and Russell S. Vaughan, M.D. Kaleida Health President and Chief Executive Officer William D. McGuire and Susan P. Graham, M.D., president of the Kaleida Health Medical/Dental Staff, are ex officio board members. McGuire is a voting member; Dr. Graham is not.

The Kaleida Health Board of Directors was restructured based in part on the recommendations of The Hunter Group, the national consulting firm that recently completed a comprehensive review of the system for performance improvement purposes. McGuire also recommended board restructure when he was appointed Kaleida president and CEO in February, Joyce noted.

"During his candidacy, Bill emphasized that the current wisdom in health care strongly dictates that smaller governing boards function more efficiently and effectively in responding to the many challenges facing health care today," Joyce said. "As a board, we are very optimistic and enthused about Kaleida Health in the years to come, as the system works to maintain and enhance its position as a regional health care leader."

Numerous operational enhancements under way at Kaleida were recapped at the Annual Meeting. These improvements contributed to an improvement in the system's financial performance during the first half of 2002.

"We've been aggressive in implementing many of the recommendations of The Hunter Group and will continue to work toward our goal of financial improvement as our top priority this year," McGuire said.

At the same time, he noted, Kaleida's hospitals, nursing homes and ambulatory surgery center have realized improvements in volume, as well as patient satisfaction levels. The system scored high in its March 2002 survey by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) with ratings of 88 for inpatient, outpatient and alcohol services; 96 for long-term care services, and 99 for behavioral health services. Kaleida's Ambulatory Surgery Center on Klein Road, Amherst, scored a 99 in its own JCAHO survey earlier this month.