2/4/1997

PITTSBURGH, February 4, 1997 — Northwest Medical Center, Venango County, and the University of Pittsburgh Medical Center (UPMC) have approved an affiliation agreement it was announced today by the Northwest Chief Executive Officer Neil Todhunter and UPMC President Jeffrey Romoff. The two organizations intend to work together on advanced specialty care, rotation of physician residents, emergency medical transport, physician recruitment and other ventures.

"We are very happy with this agreement because it assures both continuation of our current primary and specialty care services, as well as a direct link to an internationally renowned academic medical center. Our shared mission is to meet the health care needs of our communities, and we believe our affiliation will help both organizations to fulfill this mission," stated Mr. Todhunter.

Romoff concurred, saying UPMC also is very pleased with the agreement. "With this affiliation, UPMC is making a commitment to the residents of Northwest's service area and to the outstanding medical institution which serves them. A foundation of excellent care already exists in the communities which Northwest serves, and through our affiliation we hope to build together on this foundation," he said.

The affiliation will not involve either a merger or an acquisition. While becoming a member of UPMC's 25-member hospital network, Northwest will remain an independent health care system. The agreement calls for the two organizations to develop a strategic action plan which would identify several possible cooperative ventures.

Northwest is a 276-bed health care system which provides a broad range of primary and specialty health care services for residents of Venango and several neighboring counties. In addition to hospital facilities in Oil City and Franklin, Northwest operates family practice centers in seven communities in Venango, Clarion, Forest, Mercer and Butler counties.