Healthcare IT and Biotechnology News Release
Date of Publication: Monday, February 13, 2006

Catholic Healthcare West Completes 'Phase Two' of Lawson Implementation

Flawless Rollout Extends CHW's Cost-Saving Initiatives by Bringing 10 More Hospitals Live on Consolidated Business System
ST. PAUL, Minn. -- Catholic Healthcare West completed the second phase of a multi-phased Lawson Software (Nasdaq:LWSN) implementation on Jan. 15, 2006. By implementing Lawson's Human Resources, Financials and Supply Chain Management for Healthcare suites at 10 more hospitals, CHW expects to increase the multi-million dollar operational cost-savings it already has achieved using Lawson.

San Francisco-based CHW is the nation's eighth largest hospital system. It operates 40 acute care hospitals, 20 home care agencies, four physician organizations, and numerous clinics and outpatient facilities. Serving communities in Arizona, Nevada and California, CHW employs 45,000 people and has more than 8,000 licensed beds.

The phase two rollout began in February 2005 with the go live portion of the project beginning in October 2005. From Oct. 1, 2005, through Jan. 15, 2006, CHW replaced its legacy human resources, payroll, financial and materials management systems at 10 California hospitals and one home health infusion agency.

"Consolidating on Lawson is a critical part of our strategy to transform CHW from a holding company to an operating company," said Rick Canning, Vice President, Administrative Systems, Catholic Healthcare West. "The partnership between CHW and Lawson's Professional Services team is a key factor in the ongoing success of our rollout, helping us stay on track with our business objectives."

"A sharp focus on change management and project management also has contributed to our achievements," added Carol Tyler, director of CFAS Communications, Change Management, and Education, Catholic Healthcare West.

Comprehensive change management efforts are a trademark of CHW's implementations. In addition to extensive communication between the project and hospital teams, CHW took an aggressive approach to end-user training. With the goal of enabling end-users and managers to immediately use the Lawson system, the implementation team conducted "just-in-time" requisition self-service and requisition approval training during the two weeks before each hospital went live. CHW and Lawson Professional Services also fine-tuned an implementation methodology during CHW's pilot and phase one rollout, which helped enable the flawless project management of each phase two implementation.

According to Jack Clarke, director of Logistical Services at St. Elizabeth Community Hospital, this was a very effective strategy: "The approach to the implementation and the support we received from the project team was wonderful. In the last nine months, there's been a steady flow of communication, including regular progress updates to our management team. The training programs were well organized, leading to very high user participation and acceptance."

The facilities included in CHW's phase two rollout are California Hospital Medical Center, Glendale Memorial Hospital and Health Center, Mark Twain St. Joseph's Hospital, Mercy Medical Center Merced, Mercy Medical Center Mt. Shasta, Mercy Medical Center Redding, Northridge Hospital Medical Center, San Gabriel Valley Medical Center, St. Elizabeth Community Hospital, St. Joseph's Medical Center - Stockton, and home health infusion agency Trinity Care.

CHW now uses Lawson business applications at 31 of its 40 hospitals. The health system expects to complete the third and final phase of its implementation by Jan. 15, 2007, bringing its remaining nine hospitals live on Lawson.

"We're proud to be part of CHW's tremendous success and hold it up as a model for the industry - strong executive leadership, innovative change management and a strategic partnership between our organizations," said Steffan Haithcox, industry marketing director - Healthcare, Lawson Software. "Lawson is the leader in healthcare business applications because of customers like CHW."

Lawson serves more than 500 healthcare industry clients representing more than 4,500 facilities, including eight of the top 10 integrated delivery networks. The company also serves managed care systems, academic medical centers, hospitals, clinics, physician group practices, home healthcare, long-term care and other health services enterprises. Lawson solutions help healthcare organizations manage their business so they can focus on their patients, automate and streamline materials management for a better bottom line, and overcome the challenges of the labor shortage.

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