Letter of Intent Signed for Sponsorship of Saint John's Health Center

June 27, 2013

DENVER — (June 27, 2013) – SCL Health System, a faith-based, nonprofit organization, and Providence Health & Services, Southern California announced today they have signed a non-binding letter of intent for Providence to assume sponsorship of Saint John’s Health Center in Santa Monica, California.

“Providence has shown tremendous dedication to providing high-quality, compassionate care in the Catholic tradition for Southern California,” said Michael Slubowski, FACHE, FACMPE, president and chief executive officer of the SCL Health System. “This change in sponsorship will provide support to expand and enhance the healing ministry of Saint John’s for individuals and families in Santa Monica and surrounding communities.”

The Saint John’s Board of Directors, SCLHS and Leaven Ministries (the canonical sponsor of SCLHS) reviewed proposals for a new strategic partner to advance Saint John’s position among health networks in Southern California. The three groups managed an objective, thoughtful and prayerful process that identified Providence as uniquely qualified to advance the ministry at Saint John’s. Providence Southern California is a Catholic not-for-profit organization that operates five acute care hospitals and an array of ancillary healthcare facilities across Los Angeles County.

"We look forward to working in collaboration with the caregivers, physicians, volunteers, board and foundation to serve the communities of the Westside," said Michael Hunn, senior vice president and chief executive of Providence Southern California.

“Saint John’s is a vital institution with deep similarities to the history, culture and Mission of Providence. We recognize Saint John’s historic importance to those who depend on it for care and we look forward to working together to help ensure that this medical center will continue its leadership in patient care and community service.”

The letter of intent is a non-binding agreement that provides a road map for SCLHS and Providence to move forward with the necessary steps to pursue the proposed sponsorship transfer. SCLHS and Providence will enter an exclusive due diligence and negotiation process in order to arrive at a definitive agreement. The proposed change in sponsorship is subject to review and approval by the attorney general of California. The transfer of canonical sponsorship to Providence Ministries is subject to approval by the Archbishop of Los Angeles and the Holy See.