Vanguard Health Systems Not Awarded Arizona Medicaid Agency Contract for Year Commencing October 1, 2013

Vanguard Health Systems, Inc.

(the “Company”) today announced that its Phoenix, Arizona health plan subsidiary, VHS Phoenix Health Plan, LLC (“PHP”), received a letter from the Arizona Health Care Cost Containment System (“AHCCCS”) on Friday March 22, 2013, informing PHP that it was not awarded an acute care program contract for the program year commencing October 1, 2013. Under its current contract with AHCCCS, which expires on September 30, 2013, PHP covers members in nine Arizona counties: Apache, Coconino, Gila, Maricopa, Mohave, Navajo, Pima, Pinal and Yavapai. PHP has served Arizona residents since 1983. Pursuant to the terms of AHCCCS's request for proposal, pursuant to which PHP submitted its bid (the “RFP”), PHP, as an unsuccessful