Blue Ribbon Ceremony Marks Beginning of Hospital's New Life as MetroSouth Medical Center.

BLUE ISLAND, Ill. -- As hundreds of employees, community members and officials cheered and clapped, a giant blue ribbon parted and this city's historic hospital began its new life as MetroSouth Medical Center today.

"What a great day for this first-rate hospital and its wonderful employees. And what a great day for Blue Island and surrounding communities, whose residents will be able to count on many more years of the highest quality health care," said Arnold Kimmel, CEO of MetroSouth Medical Center.

Mr. Kimmel was joined by Blue Island Mayor Don Peloquin, MetroSouth Chief Restructuring Officer Lawrence Krule, Dr. Bruce Malm, President of the Medical Staff, and several of the hospital's longest-tenured employees with over 40 years of service, in wielding a pair of large gold scissors to part the blue ribbon across the hospital's entrance. Hanging from the hospital wall above them, a banner proclaimed: "MetroSouth Medical CenterOCommitted to providing another century of quality care to our community."

Today's ceremony marked the official acquisition of the hospital, formerly called St. Francis Hospital and Health Center, from SSM Health Care by MSMC Investors LLC. SSM had planned to close the 410-bed hospital, founded in 1905, after earlier efforts to find a buyer were unsuccessful.

"With its record for excellent quality of care and its highly experienced and loyal employees, this hospital's closing would have left a real void in Blue Island and surrounding communities," said Mr. Kimmel. "We know how important it is to residents, doctors, staff and patients to keep this fine hospital operating for the long term, and we intend to do just that."

With a sterling reputation for excellence in acute care, the hospital is also nationally known for its cardiology center. Building on that solid foundation, a number of new or expanded services are planned, according to Dr. Enrique Beckmann, Chief Medical Officer of MetroSouth.

"This hospital exists for the community, and we will be expanding our outreach with programs particularly vital to those we serve," said Dr. Beckmann. "For example, we will have community outreach programs screening for breast and cervical cancer and for diabetes. We will also offer community outreach in prostate cancer screening and prevention."

In addition, Dr. Beckmann said, there will be a number of improvements in services for pregnant women so that high-risk pregnancy patients and lower birth weight babies who previously had to be transferred elsewhere can be treated at MetroSouth.

The terms of the transfer from SSM to MSMC are confidential. However, Mr. Krule, the Chief Restructuring Officer of MetroSouth, said MSMC Investors and its affiliates will be investing approximately $30 million in working capital, new hospital equipment such as a 64-slice CT scanner, a PACS digital imaging system and a new mammography unit, and upgrades to patient rooms that will result in the first hospital in the South Chicagoland area to have all single-patient rooms.

"This is a significant level of investment and reflects both our confidence in the hospital and its employees and our commitment to the communities we serve," said Mr. Krule. Mr. Krule added that financing has been secured through CapitalSource, one of the leading commercial finance firms in the country.

The transfer of the hospital to MSMC Investors received support at every level of government, in particular from State Senator Emil Jones, Jr., and from Mayor Peloquin and the Blue Island City Council, which enacted resolutions of support and financial incentives for the redevelopment and continued operation of the hospital.

Also providing support were the Office of Governor Rod R. Blagojevich, State Representative Robert Rita, State Representative Kevin Joyce, State Representative Monique Davis, State Representative Will Davis and Congressman Bobby Rush.

In addition, MSMC Investors received assistance in its acquisition from a number of top local firms including the law firm of Holland & Knight and its partner Anne Murphy, as well as Ziegler Capital Management, LLC.