IHC Group, Inc. - Page 15




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          of Utah Medical Center (UMC) or Davis Hospital and Medical                  
          Center.  In particular, Health Services entered into special                
          contracts with UMC to obtain services from UMC’s:  (1)                      
          Intermountain Burn Center (the only certified burn center in the            
          region); (2) Neuropsychiatric Institute (to provide psychiatric             
          beds when LDS Hospital temporarily exceeded its inpatient                   
          capacity); and (3) Pain Management Center.  Some UMC admissions             
          were related to a unique relationship between Primary Children’s            
          Hospital, a Health Services hospital dedicated to acute care                
          pediatric services, and UMC’s specialized genetic research and              
          other pediatric-related teaching and research programs.  In                 
          addition, Health Plans, petitioner, and Care entered into                   
          provider agreements with Davis Hospital and Medical Center,                 
          located in Davis County, Utah, because there were no Health                 
          Services hospitals in the immediate area.                                   
               During the 2-year period including 1997 and 1998, UMC                  
          accounted for approximately 50 percent of all inpatient hospital            
          services provided to petitioner’s enrollees by independent Utah             
          hospitals.  During the 2-year period including 1997 and 1998, UMC           
          accounted for approximately 42 percent of all outpatient hospital           
          services provided to petitioner’s enrollees by independent Utah             
          hospitals.                                                                  
               Petitioner maintained a Core Wellness Program under which              
          SelectMed enrollees were provided health care information and a             






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