Letters of Intent filed with DOH
November 14, 2007
 

Dear friends, colleagues and partners of Empire Health Services:

As you know, Empire Health Services is going through some exciting times as we look toward the future.  Last month we announced that we had reached an Asset Purchase Agreement (APA) with a subsidiary of Community Health Systems (CHS).  As you recall, that agreement provides for CHS to purchase the substantially all of the assets of EHS, including Deaconess Medical Center and Valley Hospital and Medical Center.

This week, we are announcing that we have reached another milestone in the process as CHS filed Letters of Intent (LOI) with the Washington State Department of Health.  These LOI filings are an important step in the process in that they precede the official filing of the Certificate of Need Application and the Conversion Application that will formally begin the regulatory process.  We anticipate CHS will file those applications sometime next month.

The LOIs detail estimated purchase prices for Deaconess Medical Center and Valley Hospital and Medical Center which will be finalized at closing but do not include the purchase price for the other non-hospital assets of EHS being sold. Important to note, the net proceeds of the sale, which are estimated to be approximately $100 million, will ultimately endow an independent, community-run health foundation.
                                                          
These LOI filings are another step forward in ensuring long-term viability and health care choices for our community. The purchase and transition documents will be reviewed by the Washington State Department of Health and the Washington State Office of the Attorney General after they are filed next month. We look forward to updating you on our progress over the coming weeks and months.
 

We appreciate your ongoing interest in this process and hope that you share in our excitement. As always we welcome your input and questions. Please email the board at ehsboard@empirehealth.org.

Sincerely,                   
 
Ronald McKay, Board Chairman
 
Robert Quist, Chief Executive Officer
  
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