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News Release

CONTACT Behavioral Health Services

Date Released: 11/19/05

Schaller Anderson Behavioral Health of Arizona, L.L.C., a Phoenix-based company, has acquired CONTACT Behavioral Health Services, the state's largest nonprofit managed behavioral health care organization.

Schaller Anderson, Incorporated recently established a behavioral health subsidiary, Schaller Anderson Behavioral Health, Incorporated, and the purchase of CONTACT, a division of Banner Health, further advances Schaller Anderson's strong commitment to behavioral health.

"We will assure a smooth transition for members, employees, their families and providers," said Don J. Fowls, M.D., president and chief executive officer of Schaller Anderson Behavioral Health, Incorporated. "The name CONTACT will continue to be used."

"This is an exciting time for the CONTACT management team and staff," said Larry Frazier, chief executive officer of CONTACT. "We're all looking forward to being part of Schaller Anderson. We are becoming part of a company that has a great reputation and a company that operates in multiple states, both of which means there are tremendous growth opportunities that lie before us."

Michael McAnder, Banner Health's vice president of managed care and treasurer, said that Schaller Anderson's new behavioral health subsidiary is a good home for CONTACT.

"Our decision to sell CONTACT was made because we are focusing on our core hospital and related health services business. Schaller Anderson is ideal for CONTACT because of its very strong commitment to behavioral health management," McAnder said.

"CONTACT has an excellent reputation for serving its customers well and working collaboratively with providers to make sure members have access to quality care. Its mission and culture are completely in sync with Schaller Anderson Behavioral Health," Dr. Fowls said.

"We have worked with CONTACT in the past and know it to be a leading manager of behavioral health services," he added. "I am confident that the skills and extensive experience CONTACT's people bring, combined with Schaller Anderson's national presence and resources, will provide significant value in the marketplace."

Joe Anderson, chairman and chief executive officer of Schaller Anderson, Incorporated, said the new behavioral health subsidiary will bring "a fresh response to the behavioral health world.

"I think CONTACT members will be pleased with the service they receive, and providers will appreciate the systems we have created for financial and member data management," he said.

Dr. Fowls, who is chairman of the American Managed Behavioral Healthcare Association, added that the Schaller Anderson behavioral health subsidiary is focused on "bringing together the best people in the industry to focus on what we know to be the best practices in behavioral health care."

Founded in 1986, Schaller Anderson and its affiliates provide management of behavioral health care and health care for both Medicaid and self-funded plans. Schaller Anderson's wholly owned subsidiaries administer health plans in five states—Arizona, California, Maryland, Missouri and Oklahoma. The company also has a health care administrative services agreement with the state of Tennessee.

CONTACT was founded in 1979 and has been an industry leader in the provision of behavioral health care and alcohol and drug treatment services for more than two decades. More than one million people can access their services, and CONTACT has more than 800 providers.

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