Capella Health

Farmington, MO. May 1, 2015. – Capella Healthcare of Franklin, TN, announced today that it has finalized the sale of Mineral Area Regional Medical Center (MARMC) to BJC HealthCare of St. Louis, MO. MARMC now operates as part of Parkland Health Center, a member of BJC HealthCare.

“We are very proud of Mineral Area Regional Medical Center’s accomplishments during the seven years they’ve been part of our Capella family,” said Mark Medley, EVP, President of Hospital Operations for Capella Healthcare. “They’ve been recognized nationally for quality care, achieving ‘A’ grades in 2012, 2013 and 2014 on The Leapfrog Group’s Hospital Safety Score. In addressing the challenges the healthcare industry is facing now, we are confident that this transition is the best solution for the Farmington community and will benefit patients throughout the region.”

Parkland Health Center includes a full-service hospital in Farmington, Missouri, as well as a three-bed critical access hospital in Bonne Terre, Missouri. With over 160 associated physicians, Parkland provides inpatient and outpatient services to the residents of St. Francois County and surrounding areas of southeastern Missouri.

“Our hospitals have served those living in St. Francois and the surrounding counties for many years,” said Tom Karl, President of Parkland Health Center. “These two organizations are home to numerous employees and medical staff who have shown compassion to their neighbors, friends, and family during trying times of illness or injury, or helping to celebrate the birth of a child. This is good news for our community in this time of unprecedented change and increasing health care costs. Combining these organizations will bring stability which is necessary to continue providing exceptional care to patients living in our community.”

Health care reform, continued reductions to reimbursement, and continued increases in uncompensated care – due in part to the lack of Medicaid expansion in Missouri – have created a particularly challenging environment for smaller hospitals.

According to Karl, “Combining the hospitals will allow us to improve care, lower costs and expand services and access.”

The facilities will now be known as Parkland Health Center–Weber Road and Parkland Health Center–Liberty Road.

About BJC HealthCare

BJC HealthCare is one of the largest nonprofit health care organizations in the United States, and is focused on delivering services to residents primarily in the greater St. Louis, southern Illinois and mid-Missouri regions. With more than 26,000 employees, BJC serves the health care needs of urban, suburban and rural communities and includes 12 hospitals and multiple community health locations. Services include inpatient and outpatient care, primary care, community health and wellness, workplace health, home health, community mental health, rehabilitation, long-term care and hospice.

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.  With the philosophy that all health care 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 in its family of hospitals to strengthen and expand services and facilities. For more information, visit www.CapellaHealthcare.com.

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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.

 

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