SIE Sierra Health Svcs

Sierra Health Services Inc. (NYSE:SIE) announced today that Jonathon W. Bunker, president of Sierra's Managed Healthcare Division, has been appointed president and chief operating officer of the parent company. Anthony M. Marlon, M.D., will remain as the company's chairman and chief executive officer. Paul H. Palmer, Sierra's senior vice president and chief financial officer, has announced his retirement, effective May 2007. He will be succeeded by Marc R. Briggs, the company's vice president of finance and chief accounting officer. Bunker, 47, originally joined the company's subsidiary, Sierra Health and Life Insurance Co., serving in various management roles between 1985 and 1989. He left Sierra to serve as vice president of Prime Health Inc. and later as vice president of John Alden Horizon Health, both Nevada corporations. Bunker returned to Sierra in 1996 as vice president of HMO and Insurance Operations, graduating to president of the company's Western Region and, in 2000, president of the Managed Healthcare Division. "For some time now, my role as president and CEO has gradually transitioned to one emphasizing more external relations than day-to-day operations," said Marlon. "For the past several years, Jon has successfully overseen the dynamic growth of our core managed care operations and is the best choice to direct all of the company's operations as we continue our record of success." "I am honored to have been selected as Sierra's president and chief operating officer," said Bunker. "With the consolidation of our businesses over the past few years, I have gradually become more engaged in the daily operations of the larger enterprise. This new role solidifies that trend and will allow me greater opportunities to interact with a variety of important stakeholders, including our shareholders." Palmer, 45, has served as the company's chief financial officer and treasurer since 1998. Prior to that time, he was Sierra's director of finance and corporate controller. He joined Sierra in 1993 from the Las Vegas and San Francisco offices of Deloitte & Touche LLP. Since 2005, Palmer has split his time between Las Vegas and his home in Salt Lake City, where his family resides. The strain of this commute, combined with significant family eldercare issues, has resulted in his decision to relocate to Utah and retire from his current position, effective in May 2007. "This has been an enormously difficult decision to make," said Palmer. "Sierra's competitive position in the Nevada marketplace and its reputation on Wall Street as an efficient regional managed care company has made my role as CFO one of the most professionally rewarding opportunities of my career. Unfortunately, weekly absences from my children, coupled with circumstances in caring for elderly family members, have left me no other choice than to retire from the company." "During Paul's tenure, Sierra has seen its profitability increase significantly," said Marlon. "Paul has successfully guided us through some financially difficult periods in the early part of this decade, and has served as a credible, reliable decision-maker to Wall Street and our shareholders. While we have enjoyed an excellent working relationship, I fully appreciate the importance of his decision and am pleased he will remain on through the mid part of next year in order to best facilitate a smooth transition." Briggs, 36, will assume the position of CFO, effective May 2007. He joined Sierra in 2000 as assistant corporate controller, graduating to corporate controller in 2005. He was appointed vice president of finance and chief accounting officer in 2006. Prior to his tenure at Sierra, Briggs served as corporate controller for OB Sports, a West Coast operator of golf projects. Prior to that he was an auditor in the Las Vegas office of Deloitte & Touche LLP. "I am very excited to have this opportunity," said Briggs. "Under Paul's direction I believe the transition in the CFO's office will be seamless. I look forward to gradually expanding my leadership role at Sierra over the next several months and to increasing my visibility and participation in investor-related activities." "In the past six years, Marc has overseen many functions in our Finance department, closely interacting with all facets of our operations, including the Audit Committee of the board, the company's lenders and the SEC," said Marlon. "With each expanding role, he has done an excellent job. The board and the senior management of Sierra have complete confidence in his ability to assume the role of chief financial officer." In other news, the company has been informed by the Purchasing Division of the State of Nevada, Department of Administration, that the governor of the State of Nevada has signed the recently awarded Medicaid contract and that no appeal of the award had been filed during the formal 10-day appeal period. The new contract will be effective until June 30, 2009. The new contract also includes a provision that allows the Division of Healthcare Financing and Policy, at its sole option, to extend the contract on a year-to-year basis for up to two additional years. Sierra Health Services Inc., based in Las Vegas, is a diversified healthcare services company that operates health maintenance organizations, indemnity insurers, preferred provider organizations, prescription drug plans and multispecialty medical groups. Sierra's subsidiaries serve more than 800,000 people through health benefit plans for employers, government programs and individuals. For more information, visit the company's Web site at www.sierrahealth.com. Statements in this news release that are not historical facts are forward looking and based on management's projections, assumptions and estimates; actual results may vary materially. Forward-looking statements are subject to certain risks and uncertainties, which include but are not limited to: 1) potential adverse changes in government regulations, contracts and programs, including the Medicare Advantage program, the Medicare Prescription Drug Plan and any potential reconciliation issues, Medicaid and legislative proposals to eliminate or reduce ERISA pre-emption of state laws that would increase potential managed care litigation exposure; 2) competitive forces that may affect pricing, enrollment, renewals and benefit levels; 3) unpredictable medical costs, malpractice exposure, reinsurance costs and inflation; 4) impact of economic conditions; 5) changes in healthcare reserves; and 6) the amount of actual proceeds to be realized from the note receivable related to the sale of the workers' compensation insurance operation. Further factors concerning financial risks and results may be found in documents filed with the Securities and Exchange Commission and which are incorporated herein by reference. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Sierra will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Sierra or its business or operations. Sierra assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.