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SCL Health System and Providence Health & Services, Southern California, Sign Letter of Intent

June 27, 2013

Non-binding agreement initiates definitive negotiations for the transfer of sponsorship of Saint John’s Health Center

Media Contacts:

SCL Health System          
Cheston Turbyfill, Director, Public Affairs             
cheston.turbyfill@sclhs.net          
303-813-5091 (office) 
            
Providence Health & Services
Patricia Aidem
patricia.aidem@providence.org
818-496-478 or 818-631-7429 (cell)

DENVER — (June 27, 2013) – SCL Health System, a faith-based, nonprofit organization, and Providence Health & Services, Southern California announced today they have signed a non-binding letter of intent for Providence to assume sponsorship of Saint John’s Health Center  in Santa Monica, Calif. 

“Providence has shown tremendous dedication to providing high-quality, compassionate care in the Catholic tradition for Southern California,” said Michael Slubowski, FACHE, FACMPE, president and chief executive officer of the SCL Health System. “This change in sponsorship will provide support to expand and enhance the healing ministry of Saint John’s for individuals and families in Santa Monica and surrounding communities.”

The Saint John’s Board of Directors, SCLHS and Leaven Ministries (the canonical sponsor of SCLHS) reviewed proposals for a new strategic partner to advance Saint John’s position among health networks in Southern California. The three groups managed an objective, thoughtful and prayerful process that identified Providence as uniquely qualified to advance the ministry at Saint John’s. Providence Southern California is a Catholic not-for-profit organization that operates five acute care hospitals and an array of ancillary healthcare facilities across Los Angeles County.

"We look forward to working in collaboration with the caregivers, physicians, volunteers, board and foundation to serve the communities of the Westside," said Michael Hunn, senior vice president and chief executive of Providence Southern California. “Saint John’s is a vital institution with deep similarities to the history, culture and Mission of Providence. We recognize Saint John’s historic importance to those who depend on it for care and we look forward to working together to help ensure that this medical center will continue its leadership in patient care and community service.”

The letter of intent is a non-binding agreement that provides a roadmap for SCLHS and Providence to move forward with the necessary steps to pursue the proposed sponsorship transfer. SCLHS and Providence will enter an exclusive due diligence and negotiation process in order to arrive at a definitive agreement. The proposed change in sponsorship is subject to review and approval by the attorney general of California. The transfer of canonical sponsorship to Providence Ministries is subject to approval by the Archbishop of Los Angeles and the Holy See.

About SCL Health System
SCL Health System (SCLHS), based in Denver, is a faith-based, nonprofit health care organization operating nine hospitals, four safety net clinics, one children’s mental health treatment center and more than 160 ambulatory service centers in four states – California, Colorado, Kansas and Montana. Our $2.2 billion health network is dedicated to improving the health of the communities and individuals we serve, especially those who are poor and vulnerable. On an annual basis, SCLHS provides more than $250 million in community benefit, including services for the poor, health screenings, educational programs, community donations and research. SCLHS was founded by the Sisters of Charity of Leavenworth, who opened their first hospital in 1864. To learn more, visit www.sclhealthsystem.org.

About Providence Health & Services
Providence Health & Services, Southern California, is a Catholic not-for-profit organization dedicated to providing quality and compassionate health care and reaching out to the poor and the vulnerable in the communities it serves. Providence Southern California operates five award-winning acute-care medical centers in the Los Angeles area, providing a full continuum of healthcare services: Providence Saint Joseph Medical Center in Burbank, Providence Holy Cross Medical Center in Mission Hills, Providence Tarzana Medical Center, Providence Little Company of Mary Medical Centers in Torrance and San Pedro. The region also has numerous ancillary facilities including Hospice care, long-term care, numerous outpatient clinics, Providence Medical Institute, Providence High School and an affiliation with Facey Medical Group. These hospitals and services are a part of the national system, Providence Health & Services, which includes a total of 32 hospitals, 400 physician clinics, senior services, supportive housing and many other health and educational services. The health system and its affiliates employ more than 64,000 people across five states – Alaska, California, Montana, Oregon and Washington. In 2012, Providence provided more than $823 million in community benefit, including $272 million in free and discounted care for those who could not afford to pay for care. Providence Health & Services continues a tradition of caring that the Sisters of Providence began more than 157 years ago.

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