HealthStream Acquires Decision Critical

NASHVILLE, Tennessee (August 2012) — Bailey Southwell & Co., LLC (BSC) announces the completion of the acquisition of Decision Critical, Inc. (DCI), a privately held company that specializes in learning and competency management products for acute-care hospitals, by HealthStream, Inc. (NASDAQ: HSTM), a leading provider of learning and research solutions for the healthcare industry. The transaction closed on June 30, 2012.

This acquisition advances HealthStream’s talent management strategy with the addition of a patented technology, Critical PortfolioTM, to its suite of innovative software-as-a-service (SaaS) based solutions as well as a customer base committed to advancing the development of their workforce.

“The final stage of a transaction requires nuanced discussions and hard work to focus all parties on achieving a successful close,” said Robert A. Frist, Jr., chief executive officer, HealthStream. “Bailey Southwell delivers at these critical moments. Together, we have competed three successful transactions.”

About Bailey Southwell & Co.

Bailey Southwell & Co., LLC, founded in 2005, is a privately held investment bank with offices in Nashville, Tennessee and St. Louis, Missouri. BSC provides mergers and acquisition and capital raising advisory services to middle market companies. More information about BSC can be found at www.baileysouthwell.com.

About HealthStream

HealthStream (NASDAQ: HSTM) is dedicated to improving patient outcomes through the development of healthcare organizations’ greatest asset: their people. Our unified suite of software-as-a-service (SaaS) solutions are used by, collectively, over 2.9 million healthcare employees in the U.S. for training & learning management, talent management, performance assessment, and managing simulation-based education programs. Our research solutions provide valuable insight to healthcare providers to meet HCAHPS requirements, engage their workforce, and enhance physician alignment. Based in Nashville, Tennessee, HealthStream has an additional office in Laurel, Maryland. For more information, visit www.healthstream.com or call 800-933-9293.