Capella Health

(St. Louis) June 30, 2015 – Ascension and two of its health systems – Lourdes Health Network in Pasco, Washington, and St. Joseph Regional Medical Center in Lewiston, Idaho – have signed letters of intent with Capella Healthcare for Capella to acquire Lourdes and St. Joseph.

“Our goal, in coordination with the Boards of Lourdes and St. Joseph, has been to strengthen these health ministries so their associates, physicians and volunteers are able to continue to provide exceptional, caring health services to the communities they serve,” said Robert J. Henkel, FACHE, Executive Vice President of Ascension and President and Chief Executive Officer of Ascension Health. “Capella Healthcare already has a presence in the Pacific Northwest, and we’re confident that this change in ownership would give Lourdes and St. Joseph the ability to serve the Pasco and Lewiston communities well into the future.”

”Capella is committed to providing outstanding community-based healthcare, as Lourdes and St. Joseph’s have done for many years,” said Michael Wiechart, President and CEO of Capella Healthcare. “We are honored to have been selected as their partner for the future, and do not take likely this trust that is being placed with us. Our goals will include working together with healthcare professionals and community leaders to ensure the continued provision of high quality local healthcare and to expand services. We look forward to getting to know both of these organizations better, as well as the communities they serve, as we conduct our research.”

“The healthcare landscape is changing rapidly in this country. In this environment, it is important for St. Joseph to pursue this agreement, which reaffirms our commitment to this community” said Michael Rooney, MD, Interim CEO and President, St. Joseph Regional Medical Center. “We want to assure those whom we serve that St. Joe’s leadership, associates and physicians are dedicated to serving every individual in our community with compassion and respect.”

“We believe becoming part of Capella Healthcare is right for Lourdes and the families we’ve been privileged to serve for nearly 100 years,” said John Serle, President and CEO, Lourdes Health Network. “Our community can be confident that during this period of transition our associates, physicians and volunteers remain committed to delivering the same type of safe, high-quality, holistic, compassionate care they’ve come to expect at Lourdes.”

Both Ascension and Capella Healthcare have expressed support for maintaining the organizations’ faith-based heritage. Terms of the deal are confidential and there will be no additional information released until a definitive agreement has been reached.

About Ascension

Ascension (www.ascension.org) is a faith-based healthcare organization dedicated to transformation through innovation across the continuum of care. As the largest non-profit health system in the U.S. and the world’s largest Catholic health system, Ascension is committed to delivering person-centered care to all with special attention to those who are poor and vulnerable. In FY2014, Ascension provided $1.8 billion in care of persons living in poverty and other community benefit programs. More than 150,000 associates and 35,000 affiliated providers serve in 1,900 sites of care – including 131 hospitals and more than 30 senior care facilities – in 23 states and the District of Columbia. In addition to healthcare delivery, Ascension subsidiaries provide a variety of services and solutions including physician practice management, venture capital investing, treasury management, biomedical engineering, clinical care management, information services, risk management, and contracting through Ascension’s own group purchasing organization.

About Lourdes Health Network

Lourdes Health Network has been serving the Mid-Columbia region’s healthcare needs since 1916 – nearly a century of caring and growing with the region’s families. We are called to serve our community, our patients and our coworkers with respect and compassion – responding to their needs with a Christian spirit. Lourdes Health Network includes an acute care medical center, a behavioral health hospital providing both inpatient and outpatient programs, a network of over 17 primary care and specialty clinics, and numerous other outpatient services. Lourdes is known as a compassionate, innovative healthcare leader and is composed of nearly 750 associates along with over 200 physicians on Medical Staff. For more information, visit www.lourdeshealth.net and visit Lourdes Health Network’s Facebook page.

About St. Joseph Regional Medical Center

St. Joseph Regional Medical Center is the largest full-service Medical Center between Boise and Spokane providing advanced-level specialty healthcare. Our commitment to providing exceptional care for our community means having highly skilled and certified physicians on our healthcare team and a quality facility with the latest in medical technology. St. Joseph has more than 120 board-certified physicians and providers, active in both primary care and specialty practice. At St. Joseph Regional Medical Center, we are committed to personal care. We seek to enhance the quality of life of the citizens we serve in our local communities through the promotion of health, by assuring compassion, sharing knowledge, providing technology, and communicating a love for what we do. St. Joseph Regional Medical Center – together in health. For more information, visit www.sjrmc.org.

About Capella Healthcare

Capella Healthcare partners with communities to build strong local healthcare systems that are known for quality patient care. Based in Franklin, Tenn., Capella owns and/or operates 13 acute care and specialty hospital facilities in six states, including Willamette Valley Medical Center in McMinnville, Oregon, and Capital Medical Center in Olympia, Washington. 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. A private company, Capella has access to significant leadership and financial resources, investing 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 healthcare companies. For more information, visit the website, www.CapellaHealthcare.com.

Investor Contact:
Denise Wilder Warren, EVP, Chief Financial Officer
I[email protected]
(615) 764-3013

News Media Contact:
Beth B. Wright, SVP-Corporate Communications and Strategic Marketing
[email protected]
(615)-764-3010

Certain statements contained in this release may constitute forward-looking statements that involve risks and uncertainties.  These forward-looking statements include all statements that are not historical statements of fact and those statements regarding Capella Healthcare’s or management’s intent, belief or expectations, including statements about ultimate creation of this proposed joint venture and future operational plans of the proposed joint venture.  Actual future events or results may differ materially from these statements. No assurance can be given that the parties will enter into a definitive agreement or that the proposed joint venture will be formed. Readers also should refer to the documents filed by Capella Healthcare, Inc. with the Securities and Exchange Commission, specifically the most recent filings which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including execution of growth, acquisition and business strategies. These and other applicable risks are summarized under the caption Risk Factors in Capella Healthcare’s Securities and Exchange Commission filings. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.