Capella Health

As Capella celebrates our tenth year of service* and prepares for the next decade, we have important news to share. In July, we signed a definitive agreement with Medical Properties Trust, Inc. (“MPT”) (NYSE:MPW) which sets the stage for our future success. This comes following an extensive and year-long evaluation of different strategic opportunities. What it means is that MPT will provide the funding that will allow Capella continue to build upon our legacy of service excellence to our existing community hospitals and to provide attractive access to capital in support of our long-term growth plans. MPT brings to the table significant expertise in healthcare real estate, efficient access to capital markets and, most importantly, a company culture that is compatible with Capella’s mission, vision and values. Combined with Capella’s outstanding expertise in operating hospitals, MPT’s long-term investment and commitment will be invaluable in helping us achieve our primary goals of patient care excellence and partnering with new communities.

Recent hospital achievements help demonstrate what an outstanding family of hospitals make up Capella Healthcare. I’m especially pleased about our hospitals’ most recent accomplishments that align with our operational pillars, including:

• In Hot Springs, Arkansas, National Park Medical Center has broken ground on a $25+ million expansion project even as they’ve just been recognized as the top fundraiser for the top fundraiser for the American Cancer Society’s Relay for Life in the Central Arkansas Region. They were also recognized as “2014 Business of their Year” by their local Chamber of Commerce.
• In McMinnville, Oregon, Willamette Valley Medical Center is a Top Performer on Key Quality Measures® by The Joint Commission. They’re one of only 147 hospitals in the country to earn this award for four consecutive years.
• In Olympia, Washington, Capital Medical Center earned The Joint Commission’s Gold Seal of Approval® for 3 disease-specific programs, recognizing their achievements in hip replacement, knee replacement and spine surgery. The surveyor awarded Capital a perfect score, with no recommendations for improvement. Capital is one of only two in the state with certification in spine surgery. Additionally, the hospital was named by US News & World Report as a “High Performer” in knee and hip replacement surgeries.
• In Lawton, Oklahoma, Southwestern Medical Center is again among the “Top Work Places in Oklahoma” for the second consecutive year. It’s the only hospital in the large company division.
• And, in Muskogee, Oklahoma, EASTAR Health System, has been named “2014 Business of the Year” for its significant contributions to the improvement of the region.

We’re Growing

Earlier this year welcomed our newest facility to the family. Carolina Pines Regional Medical Center has served the community of Hartsville, South Carolina, for more than 80 years. In addition to becoming part of the Capella family, they’re also the first hospital in the new clinically integrated network formed by Capella and MUSC Health. Additionally, we are honored to be working with four other hospitals who have selected us as their future partner, performing due diligence research as we explore what working together will look like. This includes hospitals in South Carolina, Arkansas, Washington and Idaho, all places where we are already building strong networks.

The Future

As anyone working in healthcare knows, we are on the leading edge of a massive transformation of the health care system. This new era of value-based care – with an intense focus on quality, collaboration and cost-effectiveness – provides both tremendous opportunities and significant challenges.

While there are very significant changes impacting the industry, Capella’s mission and vision haven’t changed at all. What we will remain focused on is continuing to make sustained improvements in quality care as well as patient satisfaction. We will continue to work hard to provide great places for our staff to serve, and to partner in meaningful ways with our physicians. And we are seeking to partner with the right organizations as we grow our existing markets and as we add new providers and communities to the Capella family.

Hospitals and Physicians

As the industry moves away from a system that has rewarded volume to one that’s focused on value, our goal is to certain our hospitals are in the most advantageous position to thrive.  Most of our hospitals are medium-sized facilities serving non-urban communities. The nature of our facilities makes them more at risk to some of the current challenges.  But the geographic isolation can work in our favor as well, especially since we have the added size needed for efficiencies through our larger organization.

At the corporate level, we provide strong resources for our hospitals but we also realize that health care is always going to be a local business.  Our priority has to be on nurturing outstanding leadership in each community.  We work hard to engage and involve all of our local leaders – Boards, medical staff, employees.  And so for our corporate resource team, it’s about how we can best meet their needs.

The most important thing our employees and physicians must focus on is how we can continuously improve upon and deliver the highest possible quality of care.  That’s what our mission is and, frankly, in this new era is the only way hospitals can survive.  It will be harder than it’s been before, which is why we are reorganizing our corporate resources to be better able to support our hospitals with our priorities on quality, safety and patient satisfaction.

Finally, we want to be able to engage with our physicians in ways that others don’t.  Frankly, that’s what truly drives patient engagement.  Great relationships with our physicians will close the loop on quality and service goals – helping us exceed the expectations of our patients, physicians, employees and community. Working together effectively is no longer optional, it’s a must.  It’s why the first word of our mission is “together.”

Our Mission

Together, making health care better for our communities.
Setting a new standard in patient care excellence.

Our Focus

While Capella’s hospitals are well-positioned for this new era, there are hundreds of other hospitals that are going to need a partner like Capella to succeed.  That’s why we are so busy on the M&A front now, as more and more organizations reach out to us.  Because of the challenges and, in particular, the increasing needs of freestanding hospitals for management expertise and capital investments, this has the potential to be a time of significant growth for us. We’re an excellent partner for communities and can provide a full gamut of development models, based on what best meets each community’s needs.  Just check out our case studies under “Partnership Opportunities” to learn more.

And, finally, make no mistake:  the community hospital will remain the epicenter for health care as consumers look to them for answers and for support.  That’s why Capella’s vision is more timely than ever before.

Our Vision

Hospitals in the Capella Healthcare family will be the center points for transforming
the quality of life in their communities, focusing first on improving the
health and well-being of every individual.

This is the single most transformative time in our industry in decades, and Capella Healthcare is ready.

Michael A. Wiechart

President and Chief Executive Officer

 

 

 

*The date of our incorporation was April 18, 2005.