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Sisters of Charity Health System & University Hospitals Announce New Agreement for Jointly Owned Hospitals
Date:3/3/2009

CLEVELAND, March 3 /PRNewswire/ -- The Sisters of Charity Health System (SCHS) and University Hospitals (UH) have jointly announced a non-binding letter of intent to modify their existing 50/50 not-for-profit ownership structures of St. Vincent Charity Hospital in Cleveland and Mercy Medical Center in Canton. An equal 50/50 joint venture between SCHS and UH will remain at St. John West Shore Hospital with the addition of UH assuming operations through a new management agreement.

According to the letter of intent, the Sisters of Charity Health System will obtain complete (100 percent) ownership and governance of St. Vincent Charity Hospital and Mercy Medical Center. All three hospitals will retain their Catholic mission, identity and faith obligations as they serve the ongoing health care needs of their communities.

The Sisters of Charity Health System and University Hospitals will make equal investments totaling $100 million for St. John West Shore Hospital. Both members also will jointly invest $30 million combined in St. Vincent Charity Hospital to create a fundraising foundation to support the hospital to better serve the community.

"This agreement will enable University Hospitals to better serve the entire St. John West Shore community," said Thomas F. Zenty, CEO of University Hospitals. "The $100 million in new strategic investments is a clear commitment by both members to making St. John West Shore a destination hospital on the West Side. We will work closely with community leaders, physicians, clinicians, employees and volunteers to make this vision a reality.

"Meeting the community's health care needs has been an unwavering commitment of University Hospitals since our founding in 1866," continued Zenty. "In addition, we have a deep and abiding respect for the Sisters of Charity Health System, and believe this new agreement will better serve the health care needs of Northeast Ohio
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SOURCE Sisters of Charity Health System
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