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Beacon Health Strategies Names Timothy R. Murphy President and Brian C. Wheelan Chief Financial Officer

For Immediate Release
March 27, 2007

Woburn, MA - Beacon Health Strategies (BHS), a leading URAC and NCQA accredited managed behavioral health organization, today announced that it has named Timothy R. Murphy as its President. In this newly created position, Mr. Murphy will be responsible for all aspects of Beacon’s operations and will report directly to Beacon’s Chairman and Chief Executive Officer Elizabeth Pattullo. The Company has also named Brian C. Wheelan as its first Vice President and Chief Financial Officer. Mr. Wheelan will be responsible for the Company’s financial and accounting operations and analysis, network contracting and claims processing. He will report to Beacon’s Executive Vice President and Chief Operating Officer Michael J. McGreal.

Chief Executive Officer Elizabeth Pattullo said, “Over the past ten years, Beacon has earned a reputation as a high quality manager of behavioral health services for its customers. The hiring of Tim and Brian represents our commitment to deepen our existing customer relationships and demonstrates another manner in which Beacon will bring added value to new clients. These two nationally recognized health care professionals have a proven track record in both the private and public sectors and will help lead Beacon through its successful growth in the coming years. I am very excited about this new phase in Beacon’s development.”

Mr. Murphy most recently served as the Secretary of the Executive Office of Health and Human Services in Massachusetts. In this capacity, he oversaw a $12.0 billion dollar budget and approximately 22,000 employees that delivered programs and services through 15 state agencies to over one million Massachusetts residents. His signature accomplishment in this capacity was the development, passage and implementation of the landmark Massachusetts health care reform law. Prior to his state government service, Mr. Murphy was an investment banker at JP Morgan advising and raising capital for both corporations and not-for-profit institutions, including hospitals and health insurers.

“Betsy and the team at Beacon have built a very successful business by improving behavioral health care outcomes and cost efficiencies for its customers and members” said Mr. Murphy. “I look forward to adding my expertise and leadership to Beacon and helping our existing and new customers provide innovative solutions to better manage behavioral health care for individuals and their families.”

Mr. Murphy holds a Master’s Degree in Public Policy from Harvard University and a BA from Merrimack College, where he now serves on its Board of Trustees. He currently resides in North Andover with his wife Sharon.

Mr. Wheelan joins Beacon from the management consulting firm, Bain & Company, where he was a Manager in Bain’s North American healthcare practice specializing in corporate strategy for payers and providers. Prior to his tenure in the private sector, he served as Deputy Director of Massachusetts’ Medicaid program and as an Assistant Secretary of Executive Office of Health and Human Services. In his capacity as Deputy Director, Mr. Wheelan was responsible for the state’s Medicaid managed care program, the budget office and all provider reimbursement policies. In his capacity as Assistant Secretary, Mr. Wheelan was one of the primary architects of Massachusetts’ landmark healthcare reform law.

Mr. Wheelan added, “I am very eager to join Beacon at this stage of its development. My work as a consultant to health care payers and providers and as a senior manager of a large governmental health program will provide Beacon an additional resource to improve its services and operations.”

Mr. Wheelan holds an MBA from Harvard Business School and a BA in Government from Dartmouth College. A native of Illinois, Mr. Wheelan currently resides in Boston with his wife Brooke and his 19 month-old daughter Grace.

About Beacon Health Strategies

Founded in 1996, Beacon Health Strategies is a leader in behavioral health care management with an unequaled reputation for customizing solutions that meet customer’s unique needs in the most cost-effective manner. The Company is URAC and NCQA accredited and believes that a new standard of clinical, quality and customer service is achievable. Beacon's expertise and ability to execute innovative service delivery systems in complex environments differentiate Beacon from other managed behavioral health organizations. Beacon is a privately held founder led company.

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