Houston, Texas – August 7, 2003 — PROS Revenue Management, a world leader in pricing and revenue optimization science and software, and the pioneer and dominant provider of revenue optimization to the travel and transportation industry, today announced that Dr. E. Andrew Boyd, Chief Scientist and Senior VP of PROS Revenue Management will be presenting at the NACHRI 2003 Strategic Financial Planning Conference on August 15th in conjunction with Mr. Patrick Smith, Director of Managed Care Contracting at Texas Children's Hospital ("TCH").

The presentation, titled "Modeling Managed Care Contracts for Improved Margins", will explain how Texas Children's Hospital has been able to increase managed-care revenues and continue to maintain the level and quality of services needed by the patient community. Results from using a revenue optimization approach to contracting will be discussed followed by an overview of the mathematical principles used by PROS to optimize contract revenues. The talk is based on the presentation given as a finalist in the highly prestigious Edelman competition sponsored by the Management Science community.

"PROS is delighted to be able to present to the NACHRI audience for this 2003 Strategic Financial Planning Conference," states Dr. Boyd. "The use of science-based analytics in healthcare administration has tremendous potential. I'm excited to have the opportunity to present and discuss this potential in the educational format provided by NACHRI."

The PROS Hospital Optimization System, currently in use at Texas Children's Hospital, uses forecasts of patient demand for provider resources to determine resource groupings, optimal prices, and packaging strategies (discount of charges, case rate, per diem, etc.) that maximize expected contract performance and minimize risk to the hospital. Through the statistical analysis of patient encounter data, valuation of time-specific opportunities, and strategic decision support for pricing and managed care contract design, the PROS Hospital Optimization System increases contribution margin. An analysis of the portfolios of some of the major payors at one hospital indicates revenue increases of 6 to 9%.

For over 20 years, NACHRI has hosted the Strategic Financial Planning Conference, the premier educational forum for senior finance executives within children's hospitals. NACHRI is a not-for-profit membership organization of children's hospitals, large pediatric units of medical centers and related health systems, including those that specialize in rehabilitative care of children with serious chronic or congenital illnesses. Through the association, the 161 members, associates and supporters, with collectively over 190 hospitals and clinics, work to ensure children's access to health care and the continuing ability of children's hospitals to provide services needed by children.

For more information about the NACHRI 2003 Conference, please visit http://www.childrenshospitals.net/nachri/news/sfp_2003.html - program

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