Jul 12, 2001

HealthStream Launches Long-Term Care Strategy

HealthStream Launches Long-Term Care StrategyStrengthening vertical position as the e-learning provider for healthcare, HealthStream brings its service to Harborside Healthcare, PANPHA - an association of non-profit senior services, and The Kendal Corporation

NASHVILLE, Tenn.--(BW HealthWire)--July 12, 2001--HealthStream (Nasdaq:HSTM):

HealthStream (Nasdaq:HSTM), a leading provider of e-learning solutions for the healthcare industry, announced today the launching of a comprehensive strategy to meet the education and training needs of the 2.5 million healthcare professionals working in the long-term care facilities segment of the healthcare industry. To kick off this initiative, Harborside Healthcare, PANPHA - an association of non-profit senior services, and the Kendal Corporation have chosen HealthStream to deliver its new custom e-learning solutions, designed specifically for healthcare professionals serving residents in long-term care facilities.

Long-term care services are provided in a variety of settings, including nursing or assisted living facilities - which number approximately 25,000, respite care, adult day care, and home- and community-based settings, all which must meet OSHA/JCAHO mandated training requirements. HealthStream's new long-term care curriculum offers 25 courses that will help them meet those requirements, including, for example, Resident Lifting and Handling, Fall Prevention Training, and Resident Abuse.

At present, more than 1.5 million Americans live in assisted living facilities, but this population is dramatically growing, with increased demand for long-term care. The American Health Care Association reports that two out of every five Americans will need nursing home care sometimes in their lives, and that between 1994 and 2020, America's 85 and older population is projected to double to seven million and swell to between 19 and 27 million by 2050.

Harborside Healthcare, operating 50 long-term care facilities across nine states, has chosen HealthStream to provide e-learning services for their 6,800 employees. Maintaining rigorous standards for JCAHO accreditation, three of their facilities received their highest award: Accreditation with Commendation. Additionally, the American Health Care Association recognized one of their facilities with a coveted 2000 AHCA Quality Award. "We are pleased that our e-learning solutions won the confidence of a long-term care provider with such an outstanding record as Harborside Healthcare," said Michael Pote, senior vice president, HealthStream. "Our long-term care strategy is being rolled out at the top of the industry - at full throttle."

PANPHA - an association of non-profit senior services - has also selected HealthStream to offer e-learning to their membership, comprised of 350 long-term care nursing facilities, personal care homes, housing providers, and continuing care retirement communities (CCRCs). PANPHA represents non-profit religious, fraternal, community and government sponsored providers of a variety of long-term care and housing services for the elderly.

"The superior quality of the e-learning courses, coupled with their proven track record, was the deciding factor in our decision to go with HealthStream," said Ron Barth, president and chief executive officer of PANPHA. "With their singular focus on healthcare, HealthStream understands the special accreditation needs of our organizations."

As a member of PANPHA, in the not-for-profit sector of long-term care, the Kendal Corporation will pilot HealthStream's e-learning solutions to their five CCRCs across four states. A CCRC differs from other retirement options by providing a continuum of housing, services, and healthcare, centrally planned, located and administered. The high quality of services and care provided is based on this continuum which is specified in an agreement between the resident and the CCRC which is intended to last the resident's lifetime. The employees working in the healthcare system in these communities will train using HealthStream's new long-term care curriculum.

"We are energized by the enthusiastic reception of our long-term care strategy," said Robert A. Frist, Jr., chief executive officer of HealthStream. "This marks an expansion of our services beyond the hospital environment into the long-term care market. By doing so, we believe that our e-learning solutions are helping healthcare professionals conveniently train in important areas that, in turn, are improving the quality of care delivered to patients. We're honored to assist the 2.5 million caregivers who support the elderly in the nation's 25,000+ long-term care facilities."

About HealthStream

HealthStream, Inc., based in Nashville, Tennessee, with offices in Denver and Raleigh, is a leading provider of e-learning solutions for the healthcare industry.

Healthcare organizations use HealthStream's e-learning solutions to improve learning, increase compliance, and enhance organizational effectiveness for nurses, technicians, staff workers, physicians, and all clinical and non-clinical healthcare employees throughout the enterprise. Pharmaceutical and medical device companies use HealthStream's e-learning solutions to launch educational programs and reach healthcare professionals. Content providers use HealthStream's e-learning solutions to expand the reach of their programs worldwide. Healthcare portals for professionals use HealthStream's e-learning solutions to provide an instant, co-branded e-learning Web site for their users. HealthStream can be visited on the Web at www.healthstream.com

This press release contains forward-looking statements that involve risks and uncertainties regarding HealthStream. Investors are cautioned that such results or events predicted in these statements may differ materially from actual future events or results. Factors that could cause actual events or results to differ from anticipated events or results include HealthStream's limited operating history, its ability to integrate the operations and realize the results of recently completed acquisitions, as well as other risks that are contained in HealthStream's Annual Report on Form 10-K, together with other reports and documents filed from time to time with the Securities and Exchange Commission. Some of these risks and uncertainties relate to HealthStream's ability to: attract and maintain a large base of end users; develop its infrastructure, including additional hardware and software, customer support, personnel and facilities, to support its business; develop and introduce desirable services and compelling content; establish and maintain strategic relationships with content and distribution partners; establish and maintain relationships with sponsors and advertisers; and respond effectively to competitive and technological developments.

HealthStream, Nashville
Mollie B. Condra, 615/301-3237

HealthStream Brands