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SCL Health System and Community First Foundation Modify Governance of Exempla Inc.

July 31, 2012

Media Contact: Chris Woolsey, SCL Health System 303-813-5065 (office), 312-505-5268 (mobile), christine.woolsey@sclhs.net

Changes will strengthen a major local health system and bring significant new funds to Denver area nonprofits.

In a move that will strengthen local health care services and increase support for a wide range of Denver metro area nonprofits, SCL Health System and Community First Foundation have agreed to governance changes for Exempla, a nonprofit health care system that includes three hospitals and a network of physician clinics serving the Denver area.

The completion of the agreement is contingent upon meeting certain legal requirements, including notification to the Colorado Attorney General, which occurred today.

“These changes will enhance Exempla’s ability to provide the highest-quality care in today’s challenging health care environment,” said Bob Ladenburger, President and CEO of Exempla. The Exempla system includes Exempla Good Samaritan Medical Center in Lafayette, Exempla Lutheran Medical Center in Wheat Ridge, Exempla Saint Joseph Hospital in Denver, and the Exempla Physician Network of more than 100 clinics.

“With this change, Exempla remains a strong nonprofit health system and will be even better positioned to respond to market and regulatory changes occurring in health care,” Ladenburger added. Exempla has already taken advantage of economies of scale that have come from its relationship with SCL Health System, including access to capital at a lower cost and group purchasing power to achieve better prices on services and supplies.

“In addition to strengthening Exempla, this transaction will enhance Community First Foundation’s ability to serve the people of Jefferson County and the entire Denver metro area,” said Marla J. Williams, President and CEO of Community First Foundation. “It is timely given the challenges facing our communities and will have a positive impact for many years to come.”

As part of the agreement, Arvada-based Community First Foundation will receive approximately $275 million from SCL Health System over the next 20 years, increasing the foundation’s ability to address needs in Jefferson County and other communities.

Community First Foundation will dedicate $25 million of the new funds exclusively for the communities served by Exempla Lutheran Medical Center. Of that amount, $5 million will support Exempla Lutheran Medical Center’s charitable activities and $20 million will be used to create the Lutheran Legacy Fund, which will promote health, wellness and prevention in the Exempla Lutheran Medical Center service area. Community First Foundation plans to create a community advisory group to recommend how the Legacy Fund dollars are allocated.

Under the agreement, SCL Health System and Community First Foundation each remain members of Exempla, which will be governed by a community-based board of directors. SCL Health System will appoint nine out of 10 directors on the Exempla board and Community First Foundation will appoint one director. Exempla will retain ownership of its assets and SCL Health System will continue to oversee operation of the Exempla facilities, as it has since 2010.

“This agreement reflects SCL Health System’s increasing commitment to Exempla and to Denver, which is now our hometown,” said Michael A. Slubowski, President and CEO, SCL Health System. “Our roots here are deep, stretching back 139 years when the Sisters of Charity of Leavenworth first expanded into Colorado. We are committed to continuing their legacy by providing access to affordable, quality health care in Denver and throughout the state.”

SCL Health System relocated its system headquarters to Denver in March, a move that will bring an additional 750 jobs on top of its 8,000 existing employees in Colorado. In 2011, SCL Health System committed $623 million to rebuild Exempla Saint Joseph Hospital next to its historic site in central Denver. Exempla Lutheran Medical Center recently underwent $192 million in renovations and Exempla Good Samaritan Medical Center is preparing to expand its oncology and neurosciences services.

Consistent with its mission to improve the health of the communities it serves, especially those who are poor and vulnerable, SCL Health System provided more than $220 million in community benefits last year – $150 million of that total in Colorado. Those benefits include health screenings and education, subsidized care and cash donations.

About Community First Foundation
Community First Foundation has been serving the community for more than 35 years, helping donors and nonprofits come together to improve quality of life in the Denver metro area. It funds community programs, supports the services of nonprofit organizations, and assists individuals with charitable giving. The foundation is also known for its innovative programs such as GivingFirst.org, an online giving resource that has raised more than $30 million for Colorado nonprofits since 2007 and is the platform for Colorado Gives Day. For more information, visit http://www.communityfirstfoundation.org/.

About Exempla Healthcare
Exempla Healthcare was formed in 1998 and is co-governed by Community First Foundation and SCL Health System. Exempla serves metropolitan Denver through its three hospitals – Exempla Good Samaritan Medical Center, Exempla Lutheran Medical Center, Exempla Saint Joseph Hospital – and the Exempla Physician Network of primary care, occupational medicine and specialty physicians. Exempla is dedicated to improving the health of the people and communities it serves. For more information, visit http://www.exempla.org.

About SCL Health System
SCL Health System is a faith-based, not-for-profit health care organization that operates 11 hospitals, four safety net clinics, one children’s mental health center and more than 100 ambulatory service centers in four states – California, Colorado, Kansas and Montana. Based in Denver, the $2.7 billion health network is dedicated to improving the health of the communities and individuals it serves, especially those who are poor and vulnerable. On an annual basis, SCL Health System regularly provides more than $200 million in community benefit, including services for the poor, health screenings, educational programs, community donations and research. SCL Health System was founded by the Sisters of Charity of Leavenworth, who opened their first hospital in 1864. In 2011, the sisters transferred sponsorship of SCL Health System to Leaven Ministries. To learn more about the health system, visit www.sclhealthsystem.org.