[October 03, 2011]

Iowa Health System, Methodist Health Services Corporation Complete Affiliation

Iowa Health System and Methodist Health Services Corporation, Peoria, Illinois, today finalized an agreement making Methodist the eighth senior affiliate of the system. This strategic affiliation will result in more resources to serve patients in Central Illinois and economic efficiencies that will help contain the cost of health care. With the addition of Methodist's 329 tertiary beds, Iowa Health System becomes the fifth largest nondenominational health system in the United States.

Bill Leaver President/Chief Executive Officer Iowa Health System (Photo: Iowa Health System)

"This is a historic moment for Iowa Health System and Methodist," said Bill Leaver, President and CEO of IHS (News - Alert). "It brings together two leaders in health care innovation with a shared commitment to deliver the best outcome for every patient, every time."

Debbie Simon, Interim President and CEO of Methodist Health Services Corporation said, "This was the right decision at the right time. We chose IHS because its model promotes local control so we can continue to make decisions that are best for our patients, community, physicians and employees. At the same time, being a part of IHS gives us the tools and resources we need to better serve our community in an increasingly complex health care environment. We are very excited about the future and look forward to our role in IHS's vision for Illinois."

IHS operates a successful, decentralized governance model emphasizing physician-driven, patient-centric care. The model allows affiliates to maintain local autonomy in all significant areas where local control provides the highest quality, most cost-effective service to patients and their families. Methodist will retain its Board of Directors. Its local leadership team will maintain is responsibility for operations. Employee status will not change.

The IHS affiliation agreement provides Methodist with the following:

• Commitment to invest $175 million into strategic capital initiatives identified and initiated by Methodist. This means Methodist will be able to expand its spectrum of services with new technology and improved coordination of care
• Greater capacity to share best practices across a multi-state system that includes hospitals, physicians and a range of other services
• Increased cost savings opportunities by sharing support services among a large group of facilities
• System-wide resources to invest in the full continuum of care to better serve the people of the region
• Access to strategic investment capital due to IHS's strong AA credit rating

About Iowa Health System:

IHS has relationships with 26 hospitals in metropolitan and rural communities and more than 140 physician clinics. With annual revenues of $2.3 billion, IHS entities provide patient care in Western Illinois and much of Iowa, employ nearly 20,000 employees and see more than 2.5 million patient visits per year. Including Methodist, IHS has eight senior affiliates: Allen Health Systems, Inc. (Waterloo, Iowa); Finley Tri-States Health Group, Inc. (Dubuque, Iowa); Iowa Health - Des Moines (Des Moines, Iowa); St. Luke's Health System, Inc. (Sioux City, Iowa); St. Luke's Healthcare (Cedar Rapids, Iowa); Trinity Health Systems, Inc. (Fort Dodge, Iowa) and Trinity Regional Health System (Rock Island, Illinois).

Over the years, IHS hospitals have received national recognition for quality, service and patient satisfaction, including the Magnet Award for Nursing Excellence, Top 100 Heart Hospital designation, HealthGrades Patient Safety Award, Gold Iowa Recognition for Performance Excellence and more. Currently, 63 communities are served by more than 140 IHS physician clinics. IHS also includes three accredited colleges of nursing and/or allied health fields and more than 600 employed physicians.

About Methodist Health Services Corporation:

Peoria, Illinois-based Methodist Health Services Corporation is a single hospital integrated health care delivery system, with 37 sites serving 19 counties in Central Illinois, and annual revenues of $400 million. It includes Methodist Medical Center of Illinois (Methodist), a 329-bed tertiary hospital with a staff of almost 600 board-certified physicians; Methodist Medical Group, a network of more than 150 primary care and specialty physicians, and Methodist College of Nursing. Established in 1900, Methodist is nationally recognized for delivering outstanding health care. In 2009, Methodist was named one of America's Best Hospitals by U.S. News & World Report, including being in the Top 10 for nursing care and pain management. Methodist is also the first hospital in downstate Illinois to be awarded Magnet designation for Excellence in Nursing Services, the nation's highest honor in patient care, and has twice been named one of the 100 Top Cardiovascular Hospitals in the U.S. In 2010, Methodist was ranked among the Top 100 hospitals for major orthopedic surgery. In 2006, Methodist received the Lincoln Gold Award for Achievement of Excellence, the State of Illinois' highest quality award. A leader in health care information technology, Methodist is among the fewer than 10 percent of hospitals nationwide to fully implement Computerized Physician Order Entry and electronic medical records. Methodist was recently named one of America's Most Wired Hospitals for 2011.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50010226&lang=en

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