BHS Trustees Approve Development of New Healthcare Delivery System

Regional multi-campus approach to increase accessibility

Butler, PA (November 20, 2006) – The trustees of the Butler Health System (BHS) announced an expansion program to address its community’s care needs through the development of a new region-wide healthcare delivery system.

After concluding it could not adequately deliver quality care by renovating the East Brady Street campus alone, BHS trustees and administration reviewed three potential options: (1) build an entirely new facility on a new campus, (2) relocate near the Butler Veteran’s Affair’s Medical Center, or (3) pursue a dual-campus system that would separate outpatient from inpatient treatment. The Pittsburgh-based architectural firm Astorino analyzed these options and presented their analysis to the Board.

Today’s announcement, although similar to the third option, sets a different path: new inpatient care space on the current East Brady Street campus, and the creation of new, more comprehensive outpatient care facilities within the Butler region to manage exponentially growing outpatient care.

The building projects that are about to begin include:

• A new acute care inpatient tower on the East Brady Street campus
• Multiple, new outpatient facilities throughout the Butler region
• Investment in technology that will link physicians, the hospital, outpatient sites, and patients.

The new outpatient campuses will be located in a number of places and take varied forms. Some will be developed in partnership with other health entities, some operated exclusively by BHS.

These outpatient facilities will offer residents choice, ease of care and increased accessibility to their healthcare services.

In addition, BHS will make a multi-million dollar investment in information technology, electronically linking hospital services, doctors and patients for enhanced care.

Construction costs for the new health care system will be about $140 million. All construction costs will be funded solely by the hospital’s existing cash reserves, future operating revenue and bonds. No tax dollars will be used.

“This decision means anyone who relies on BHS can be assured they’ll get the best possible health care for generations to come,” said William D. Bessor, chairman of the BHS board.

“The most exciting part of this process is just beginning,” said Ken DeFurio, Interim President and CEO at BHS. “We are assembling groups of employees, physicians, and community stakeholders to begin the very real work of planning exactly what we will build.”

Construction will begin on the East Brady Street campus first with demolition of the Nixon Sarver Building.