USMD Holdings, Inc. ( NASDAQ: USMD), a physician-led integrated healthcare system, announced today that Jacob Rosenstein, M.D., an active staff member of USMD Hospital at Arlington, became the first surgeon in the world to implant an Arena-C® HA with PEEK-OPTIMA® HA Enhanced. This cervical spinal implant is designed to provide mechanical stability and quicker healing for patients who need spine surgery. Dr. Rosenstein completed the surgery on March 11, 2015, at USMD Hospital at Arlington.

The Arena-C HA with PEEK-OPTIMA HA Enhanced, which is manufactured by SpineFrontier®, is a spinal implant device that is produced with a revolutionary new biomaterial to enhance spinal fusion technology. Dr. Rosenstein utilized the implant in an anterior cervical discectomy and fusion procedure to treat a patient who was suffering from spinal cord compression and myelopathy as a result of degenerative disc disease that was producing severe cervical stenosis.

PEEK-OPTIMA HA Enhanced shares all of the properties of PEEK-OPTIMA Natural, which aids in stabilizing the cervical spine, but it has been compounded with hydroxyapatite (HA), a naturally occurring compound in bony structures. HA promotes the formation of a direct interface between the implant and bone, without intervening soft tissue. This is the first implant to be made with HA, and was approved for use by the FDA in October 2014.

"The Arena-C HA with PEEK-OPTIMA is a potential game changer for spinal fusion procedures," said Jacob Rosenstein, M.D. "By incorporating HA, a naturally occurring compound in bony structures, into the PEEK Cage, fusion rate will improve, as HA promotes direct attachment of the implant to the bone, thus providing added stability and quicker healing. The device also has a tapered design for easier insertion, a large bone graft pocket to promote bone fusion and aggressive teeth to prevent expulsion. This is a great benefit to patients, who will heal faster and more predictably and return to normal activity sooner."

"USMD is honored to be the first hospital in the world in which one of our staff physicians conducted a surgery that utilizes the new Arena-C HA spinal implant in a patient," said John House, M.D., chairman of the board and chief executive officer of USMD Holdings. "This is just one more example of the excellence of the physicians and staff working at USMD Hospital at Arlington."

Dr. Rosenstein is a board-certified neurosurgeon who specializes in treating disorders of the spine. He earned his B.A. in Human Biology from Johns Hopkins University. He completed his medical degree from the Johns Hopkins University School of Medicine and his residency in Neurological Surgery at U.T. Southwestern Medical Center and Parkland Hospital in Dallas, where he served as Chief Resident of Neurological Surgery. He completed his fellowship in Neurological Surgery at the Gough-Cooper Department of Neurology and Neurosurgery at the National Hospital for Nervous Diseases in London, England. He has more than 30 years of experience caring for patients. Dr. Rosenstein serves as a member of the USMD Hospital at Arlington Board of Directors and was one of the hospital's founding physicians.

About USMD Holdings, Inc.

USMD is a publicly held (NASDAQ: USMD), physician-led, integrated health system committed to exemplary patient care. Headquartered in Irving, Texas, USMD serves the Dallas-Fort Worth metropolitan area with more than 250 physicians and associate practitioners, and provides healthcare services to patients in just under 20 different specialties at its two hospitals, six cancer treatment centers and nearly 70 physician clinics, many of which are multi-specialty. All 29 of USMD's primary care clinics have been accredited by the Patient-Centered Medical Home Program, a recognition program that is part of the National Committee for Quality Assurance. This recognition means that USMD's primary care clinics successfully display and utilize evidence-based, patient-centered processes that focus on highly coordinated patient care and long-term patient relationships. For more information about USMD, visit www.usmd.com.

About USMD Hospital at Arlington

USMD Hospital at Arlington is a physician-owned hospital where clinical and surgical excellence are the everyday standards. With nine oversized state-of-the-art operating rooms and two procedural rooms, USMD Hospital at Arlington is equipped for a wide variety of cases. The extensive surgical experience and expertise with three da Vinci Systems has made USMD Hospital at Arlington a leader in the DFW Metroplex, and one of the top ten robotic surgery programs in the world. If an overnight stay is required, the hospital offers 34 private inpatient suites complete with WiFi, a small refrigerator, TV and an additional bed for an attending family visitor. What further differentiates this hospital from its competitors is its 1:5 nurse to patient ratio versus the national average of 1:8.

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