University of Pittsburgh Medical Center and Woodlawn Health Resources Inc. Reach Agreement about Future of Aliquippa Hospital

PITTSBURGH, March 16, 2001 — University of Pittsburgh Medical Center and Woodlawn Health Resources Inc. (WHRI) have reached an agreement that would transfer the ownership of UPMC Beaver Valley (formerly Aliquippa Hospital) back to WHRI, a nonprofit community group. Both sides presented this agreement to Judge Lee J. Mazur, of the Orphans Court in Allegheny County, who is expected to rule on the agreement early next week.

George Ehringer, chairman of the board of WHRI, praised the agreement. He stated, “We are extremely pleased that through this arrangement, our community can maintain its acute care hospital. As long as the community and its physicians support our efforts, we are optimistic about the future of the facility.”

Under the agreement, University of Pittsburgh Medical Center will transfer the ownership of the facility back to the foundation and provide $2.5 million in working capital to see the hospital through the first phase of the transition. WHRI has agreed to retain Doctors Community Healthcare Corp., based in Arizona, to manage the hospital.

University of Pittsburgh Medical Center will continue to provide mental health and behavioral medicine services through its Rochester facility and will continue to operate the outpatient center in Moon Township.

“We wish WHRI well in its continued efforts to preserve the operations of this facility and will work with them to ease the transition,” stated Irene Kane, Interim CEO of UPMC Beaver Valley.

“We especially want to acknowledge the support of Attorney General Mike Fisher and his office for their keen interest in making sure that the needs of the citizens of Aliquippa were addressed. Mr. Fisher was instrumental in successfully resolving this transaction so it would be acceptable to all parties,” continued Ms. Kane. She went on to say that it was Mr. Fisher’s help and guidance that made this agreement a reality.

UPMC Beaver Valley (formerly Aliquippa Hospital) is an acute care facility that has been owned and operated by University of Pittsburgh Medical Center since 1996. Last October, UPMC announced that it would close the inpatient operations of the facility due to long-standing financial losses.