Have you Heard the Latest?

Kansas City is a very competitive healthcare market. I know, everyone thinks their market is competitive. We have over 20 hospitals in the area to provide some perspective. In many ways it is an overbedded marketplace. Many days, concerns circulate about different health systems. I have included a letter addressing recent concerns. It was sent to our medical staff from me and our Chief Medical Officer.

Since word gets around town quickly, I thought I could expedite things. Please let me know if you have additional questions.

__________________

Sent: May 18, 2010

Dear St. Joseph Medical Center Physician:

Perhaps never before has there been more challenge with regard to the business of providing healthcare. Our medical staff is extremely important to us and vital to our continued success. Please know we will continue to foster communication as we build our future. We felt the need to communicate with you and emphasize that Carondelet Health is in a solid clinical and financial condition poised to compete and gain market share.

The recent passage of healthcare reform begins what will be years of changes and challenges. We are just beginning to realize the impact of this legislation and what it will mean for hospitals, physicians and other healthcare providers. While consistent and sustained volume has been a challenge for us in recent years, we are a strong and vital health system. The difficult decisions we have had to make this year are putting us in a position to earn capital for reinvestment in our organization. We are turning our organization around to experience the type of growth and success that has kept St. Joseph Medical Center strong for more than 100 years. Although we have had to make some changes similar to many businesses in the current economy, we have been unwavering in our decision to do what is needed to maintain a nurse-to-patient ratio which you know ensures the highest quality care for your patients.

There is no denying that the past few years have been challenging for the Carondelet Health family. We firmly believe that we now have a solid foundation on which to build for many years to come. We appreciate the hard work of all our physicians, associates, nurses and volunteers as they provide the high quality, compassionate care for which St. Joseph is known. As we continue to focus on growth initiatives, we look forward to updating you on the many successes we know are in our future. Thank you for your ongoing support of St. Joseph Medical Center.

Sincerely,

Scott Kashman Steve Stoops, MD
Chief Executive Officer Chief Medical Officer