6/25/1996

ELLWOOD CITY, June 25, 1996 — A formal affiliation agreement between Ellwood City Hospital and the University of Pittsburgh Medical Center System (UPMCS) has been signed, it was announced today by Herbert S. Skuba, president and chief executive officer of Ellwood City Hospital. Under this affiliation agreement, both organizations will retain their independence and autonomy.

According to Mr. Skuba, "Ellwood City Hospital has been delivering quality health care services to the citizens of southern Lawrence County, northern Beaver County and southwestern Butler County for 86 years. An affiliation with a highly-respected and credible partner such as the University of Pittsburgh Medical Center (UPMC) will clearly enhance the ability of Ellwood City Hospital to continue its role and mission."

Mr. Skuba went on to cite various positive changes that will occur because of this affiliation. Among them are:

• The addition of new specialty services not currently available in or near Ellwood City;

• Effectively positioning the hospital to compete in a managed care environment and to attract new primary care physicians;

• Achievement of operational efficiencies through a consolidation of purchasing powers.

Future plans for the affiliation may include programmatic, educational and administrative collaborations between the institutions and their medical staffs.

According to Jeffrey Romoff, president of the UPMC, "We are pleased to welcome Ellwood City Hospital as a partner in our network. We believe that our respective missions are compatible and clearly, this affiliation will be mutually-beneficial. More importantly, it will insure that the communities we serve will continue to receive the very highest quality health care."

Ellwood City Hospital is a 99-bed acute care hospital providing cost-effective, primary care to the community and the UPMC is a regional and national leader in advanced medical care, teaching and research