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GRANT HOSPITAL ANNOUNCES PLANS TO SELL TO COLUMBIA HEALTHCARE CORPORATION

 Chicago, Oct. 6 /PRNewswire/ -- Grant Hospital of Chicago's board of directors decided last night to begin negotiating the acquisition of Grant by Columbia Healthcare Corporation (NYSE: COL). Grant is a 479- bed hospital located in Lincoln Park. Terms were not disclosed, except that the transaction is expected to be completed by January.
 After careful deliberation, the board concluded that Columbia's proposal most closely met their criteria for a sale or merger. These criteria included the protection of employees, physicians and bondholders; memorializing the name of Grant Hospital and the legacy of its benefactors; the promotion of community benefit; and sufficient cash to continue funding the Grant Hospital and Healthcare Center Foundation to promote healthcare or other charitable purposes.
 "The board believes that the community will benefit from the more efficient delivery of healthcare from Columbia, and that Grant will continue to deliver first-rate medical care within a growing network," said Board Chairman George Covington. "The leaders of our medical staff have also endorsed this plan."
 Columbia currently owns and operates 955-bed Michael Reese Hospital and Medical Center and 356-bed Hoffman Estates Medical Center in the Chicago area.
 In a joint statement from Sam Holtzman and Jack Shapiro, chief executive officers of Michael Reese and Hoffman Estates, respectively, the hospital executives said that the addition of Grant Hospital will strengthen Columbia's network in the Chicago area and enable the hospitals to reduce costs and aggressively bid for health care contracts based upon quality and price.
 "By sharing administrative costs and combining local purchasing power, we'll reduce costs while maintaining the high quality our patients have come to know and respect," they said.
 Columbia Healthcare Corporation currently is one of the largest health care services provider companies in the nation, operating 94 hospitals and complementary health care facilities in 18 states. Anticipating the changes expected with healthcare reform, Grant recognized the strategic need to become part of a network delivery system. Columbia builds comprehensive health care networks of acute- care and specialty hospitals, as well as comprehensive outpatient services in its local markets.
 Columbia and HCA - Hospital Corporation of America recently announced the signing of a definitive agreement to merge in a tax free stock-for-stock transaction. The new company, Columbia/HCA Healthcare Corporation, will own and operate 190 hospitals in 26 states using economies of scale to reduce health care costs. HCA currently owns three psychiatric hospitals in the Chicago metropolitan area.
 -0- 10/6/93
 /CONTACT: Shelley Fox of Grant Hospital, 312-883-3800, or Lori Fein, 502-572-2301 or Lee Wood, 502-572-2115, both of Columbia Healthcare Corporation/
 (COL)


CO: Columbia Healthcare Corporation ST: Illinois IN: HEA SU: TNM

TM -- NY095 -- 9546 10/06/93 18:52 EDT
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Publication:PR Newswire
Date:Oct 6, 1993
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