Hospitals Announce Exploratory Talks

Lehigh Valley, Pa., (April 23, 2008) - Lehigh Valley Hospital and Health Network and Sacred Heart Hospital and HealthCare System announced today that the two organizations have entered into talks to explore a possible collaborative arrangement.

When Sacred Heart Hospital discontinued open heart surgery, Lehigh Valley Hospital cooperated and initiated a supportive approach for cardiac services. The successful implementation of this has led the Board of Trustees at Sacred Heart Hospital to seek discussions with the Board at Lehigh Valley Hospital of other possibilities ranging from further collaboration to full affiliation. "The clinical reputation of Lehigh Valley Hospital was a major factor in choosing to consider a more complete relationship," said Frank Sparandero, M.D., President and CEO, Sacred Heart Hospital and HealthCare System. "Our Board of Trustees wants to assure that the Sacred Heart mission of caring for the Allentown community and adherence to the Catholic ethical and religious directives for health care will be continued. Furthermore, Sacred Heart Hospital has encountered some of the increased difficulty small independent hospitals face in the highly competitive health industry."

"Sacred Heart Hospital has been a vital part of the Allentown community for nearly 100 years," said Elliot Sussman, M.D., president and CEO, Lehigh Valley Hospital and Health Network. "We have an obligation to ensure that all people in our community continue to have access to safe, high quality care. Currently, we are working with our Sacred Heart colleagues to carefully review this opportunity and determine the best course of action for our community."

The boards of both organizations have approved an exploratory period where Lehigh Valley Hospital and Health Network officials will review various components of Sacred Heart's operation.

Sacred Heart Hospital is a 263-bed Catholic medical center located in central Allentown, Pa. Founded in 1912, Sacred Heart Hospital offers a range of advanced medical services. A network of physician practices throughout Lehigh and Northampton Counties provide complete primary and pediatric medical care to the region's residents. Additional information is available at www.shh.org.

A 988-bed premier academic community hospital, Lehigh Valley Hospital and Health Network comprises three hospital facilities - two in Allentown and one in Bethlehem, Pa. and Lehigh Valley Health Services., providing home health, hospice, pharmaceutical and health management services. All three Lehigh Valley Hospital and Health Network hospitals are designated national Magnet hospitals for excellence in nursing.

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