Bon Secours Health System adds three hospitals to growing organization -- Pa., and 2 Va. facilities signed on Thursday.

MARRIOTSVILLE, Md.--(BUSINESS WIRE)--Oct. 31, 1996--Bon Secours Health System Inc. (BSHSI), a multi-state, not-for-profit Catholic health care system, Thursday signed documents completing two hospital acquisitions and creating a 50/50 partnership with a third.

The system acquired Mercy Regional Health System in Altoona, Pa., DePaul Medical Center in Norfolk, Va., and established a partnership with Mary Immaculate Hospital in Newport News, Va. Today's announcement brings the number of facilities in the system to 22, including eight long-term care facilities and 14 acute care hospitals. The system has nearly doubled in size in the last three years.

"It is clear that the best way to provide accessible, quality health care for people in need is for us to expand our mission," said Bon Secours Health System board chairperson Sister Rita Thomas.

"Today's announcement will not be the last in our on-going effort to strengthen our position as a leader among Catholic health care systems. In fact, we are actively looking at new relationships including acquisitions and partnerships in several locations," said Christopher M. Carney, acting BSHSI CEO.

Mercy Regional Health System has 182 licensed beds and has been sponsored by the Sisters of the Holy Family of Nazareth (CSFN) since 1935.

The 366-bed DePaul Medical Center in Norfolk, Va., opened in 1855, has been sponsored by the Daughters of Charity National Health System-Southeast. The institution recently named Richard A. Hanson chief executive officer. Hanson also is CEO of Bon Secours-Maryview Health Corporation in Portsmouth, Va.

Bon Secours will act as a 50/50 partner and will assume management responsibilities with the 110-bed Mary Immaculate Hospital of Newport News, Va. Mary Immaculate is sponsored by the Bernardine Franciscan Sisters and was opened in 1952. The operation includes St. Francis Nursing Center, a 115-bed long-term care facility.

The sponsoring organizations from all of the hospitals cited the compatibility of their mission with that of Bon Secours and the strength of its growing system as key reasons for the ownership changes.

"Many stand-alone hospitals are seeking new relationships," said Carney, "and where it serves our mission to help people, and especially where we can sustain an active component of the Catholic health ministry, we are anxious to explore them," he added.

The acquisitions and partnership with Mary Immaculate bring the total number of BSHSI employees to nearly 19,000 and its net revenue to approximately $1 billion. -0-

FACT SHEET

Bon Secours Health System Inc.

Based in Marriottsville, Md.

The Health System headquarters is located in Marriottsville, Md., (about 20 mi. west of Baltimore) as is the United States Provincial House of The Sisters of Bon Secours.

Not-for-profit System with 22 facilities; net revenues of $1 billion

Bon Secours Health System Inc. is a not-for-profit organization with 14 acute care hospitals; eight long-term or nursing care facilities; along with primary care clinics, home health care services, and hospices. Annual net revenues are $1 billion.

Facilities on East Coast, Michigan

Facilities are located in six states on the East Coast and Michigan, with a concentration of 10 in Virginia and five in Florida.

Professional management

The System is governed by a board of directors which includes a number of Sisters of Bon Secours as well as business and health care professionals. The acting Chief Executive Officer is Christopher M. Carney, regional vice president, Virginia.

Rapid growth since 1993

Beginning in 1993, the System began an expansion program that continues to this day. The System has acquired, through ownership or managing interest, seven new acute care facilities and two new long-term care facilities.

Beds, revenues, employees, services expand with facilities

The System has experienced significant growth by almost every measure. Between 1993 and 1996: -- Licensed beds up from 1,744 to 3,532; -- Acute care operating beds up from 1,167 to 2,477; -- Annual net patient revenue up from $609 million to $873 million; -- Employees up from approx. 10,000 to approx. 19,000.

CONTACT: Bon Secours Health System Inc.

Chris Carney or Ed Boyer, 410/442-5511