Catholic Healthcare West to Offer Free Dependent Health Care Coverage to Employees; Benefit Enhancement Recognizes CHW's Commitment to Employees and Being the Industry's Employer of Choice.

Business Editors/Health & Medical Writers

Catholic Healthcare West (CHW), the leading Catholic hospital system in the Western United States, announced today plans to offer free dependent health care coverage option to all benefited employees throughout the organization's 42-hospital system.

The announcement comes at a time when many companies, large and small, are cutting health care benefits to employees as a way of saving money.

"This significant benefit enhancement recognizes the important role our employees play in improving the health and well-being of our patients and responding to the needs of our communities," said Lloyd Dean, president/CEO of Catholic Healthcare West. "We believe that by taking this step, CHW will be able to continue attracting and retaining the industry's best professionals, ensuring even stronger delivery of health care in the years to come."

CHW will begin offering the free dependent health care option to all non-represented employees beginning in January of 2003. The effective date for represented employees will depend on collective bargaining priorities and individual market conditions.

The decision to move toward free dependent health coverage was based on feedback from current and prospective CHW employees and reflects the organization's core mission and values of dignity and justice.

"We believe health coverage is critical for all people, and as a health care leader, CHW must be part of the solution by ensuring access to our own employees and their families," said Mr. Dean. "We will continue to work together with our employees to be both fiscally responsible and provide the important benefits one would expect from a leader in the health care industry."

About CHW

Founded in 1986, Catholic Healthcare West is the largest Catholic health care system based in the Western United states with 42 hospitals and two medical practice groups in California, Arizona and Nevada. CHW is sponsored by eight religious orders and works to further the healing ministry of Jesus by delivering compassionate, high-quality, affordable health services; providing direct services to the poor and disenfranchised, and advocating on their behalf; and partnering with others to improve the quality of life in the communities we serve. CHW annually provides more than $300 million in community benefits and care for the poor, and employs approximately 34,000 people.