Capella Health

December 23, 2014. KershawHealth, MUSC Health and Capella Healthcare have announced the signing of a Letter of Intent (LOI) to explore potential partnership opportunities. Formalization of this agreement, which is non-binding, enables the three organizations to further explore the opportunity and to conduct due diligence research.

At its Board meeting on December 8, the KershawHealth Board of Trustees voted unanimously to authorize its board chair to sign the LOI, which could make it part of Midlands HealthONE Network, a healthcare integrated delivery network operated jointly by Capella Healthcare and MUSC Health (Medical University of South Carolina).

Based in Franklin, Tennessee, Capella Healthcare is a private investor-owned organization with thirteen acute care and specialty hospitals in six states. As the result of an agreement signed in October by Capella to acquire Carolina Pines Regional Medical Center in Hartsville, that hospital will become the first hospital in the Midlands HealthONE Network when it joins Capella on January 1, 2015. MUSC Health is the oldest medical school in South Carolina and has a long tradition of excellence in education, research, and patient care.

In reality, KershawHealth already has many connections to MUSC Health. Many physicians in the community are graduates of MUSC Health, and many community residents routinely receive advanced care there. Additionally, KershawHealth was one of the first hospitals to join MUSC’s REACH tele-stroke network.

“This letter of intent comes after many months of careful research and thoughtful deliberation, always focused on what in the end would be the best way forward for our community,” said Board Chair Karen Eckford. “While we still have work to do to finalize this agreement, we feel very positive about this potential relationship with MUSC Health and Capella Healthcare because both are deeply committed to community-based healthcare. Moreover, this partnership can help ensure we have the physicians necessary to care for everyone in our community.”

Dr. Patrick J. Cawley, CEO of MUSC Medical Center, said: “KershawHealth fits perfectly into MUSC Health’s evolving mission to serve the people of South Carolina through innovative partnerships with local providers. Our goal is to bring our deep and comprehensive resources in clinical excellence, patient safety, healthcare provider education and physician development to communities throughout South Carolina, without those communities having to come to Charleston unless absolutely necessary. We are pleased KershawHealth will be on the leading edge of this initiative, which will transform healthcare delivery, and thus health outcomes, in our state.”

Michael Wiechart, President and CEO of Capella Healthcare noted: “Like KershawHealth and MUSC Health, Capella is committed to the delivery of local community-based health care. With more than a century of service, KershawHealth is a significant and well-respected community asset. We do not take lightly this trust that has been placed in us by the community’s leaders and healthcare professionals. Our goal in working together is to ensure the continued provision of high quality local healthcare, to expand services, and to provide seamless access to the advanced care available through MUSC Health. We look forward to getting to know the organization and the community better as we continue our due diligence research over the next few weeks.”

About Capella Healthcare

Capella Healthcare partners with communities to build strong local healthcare systems that are known for quality patient care. Based in Franklin, Tennessee, Capella currently owns and/or operates 13 acute care and specialty hospital facilities in six states. With the philosophy that all healthcare is local, Capella collaborates with each hospital’s medical staff, board and community leadership to take care to the next level. The company has access to significant leadership and financial resources, investing 100% of net cash flow in its family of hospitals to strengthen and expand services and facilities. The company was recognized in 2012 and 2013 by Modern Healthcare as one of the nation’s fastest growing health care companies. For more information, visit the website, www.CapellaHealthcare.com. Twitter: @CapellaHealth

About MUSC Health

Founded in 1824 in Charleston, The Medical University of South Carolina is the oldest medical school in the South. Today, MUSC continues the tradition of excellence in education, research, and patient care. MUSC educates and trains more than 3,000 students and residents, and has nearly 13,000 employees, including approximately 1,500 faculty members. As the largest non-federal employer in Charleston, the university and its affiliates have collective annual budgets in excess of $1.7 billion. MUSC operates a 750-bed medical center, which includes a nationally recognized Children’s Hospital, the Ashley River Tower (cardiovascular, digestive disease, and surgical oncology), Hollings Cancer Center (one of 66 National Cancer Institute designated centers) Level I Trauma Center and Institute of Psychiatry. For more information on academic information or clinical services, visit www.musc.edu. For more information on hospital patient services, visit www.muschealth.org