Capella Healthcare ranked #16 in Modern Healthcare’s inaugural “Healthcare’s Hottest” recognition program

Award Recognizes the Fastest Growing U.S. Healthcare Companies

Capella Healthcare ranked #16 in Modern Healthcare’s inaugural “Healthcare’s Hottest” recognition program

<0> Capella HealthcareBeth B. Wright, 615-764-3010VP-Corporate Communications </0>

Capella Healthcare has been ranked #16 on list of the fastest-growing healthcare companies as part of the magazine’s inaugural recognition program. The program recognizes the 40 fastest-growing healthcare companies that are headquartered in the U.S., have at least $20 million in revenue for 2011, and have been in business for five years or more. The was released on July 21, with the announced on September 22.

The program identified the “Fast 40” companies in the following sectors: hospitals/hospital systems, physician group practices, payers/insurers, and suppliers. Only ten of the 40 were hospitals/hospital systems, with Capella being the second highest ranked hospital/hospital system on the list.

“Being named to ’s list of the Healthcare’s Hottest for 2012 demonstrates Capella’s ability to increase their financial health despite the economic downturn and tepid recovery,” said Fawn Lopez, Vice President and Publisher of .

“We are honored to be the highest ranked acute care hospital system on this listing,” said , co-founder, chairman and CEO of Capella. “Since we founded Capella in 2005, our leadership has worked together with our hospitals and the communities we serve to grow smartly and deliberately. We have grown through both acquisitions and by expanding our services in existing markets through targeted investments and physician recruitment, with our net revenue having tripled from 2006 to 2011.”

“Being named to ’s list of the fastest-growing hospital companies reflects the success of our strategy and, in particular, the hard work and dedication of our thousands of employees, affiliated physicians, and volunteers, including Board members. And it provides additional validation for our , focusing on the five pillars of Quality, Service, People, Growth and Finance.”

Capella continues to grow through acquisitions and innovative partnerships with other healthcare providers in the communities it serves. In May, Capella and , Nashville, completed a to operate four Capella hospitals in Middle Tennessee. The Capella-Saint Thomas system potentially could expand to additional sites over a 60-county area of Tennessee and Kentucky.

On July 1, Capella agreed to a long-term lease to operate Muskogee (Okla.) Community Hospital jointly with Capella’s and form a to better serve residents in the Muskogee region. Similarly, in Hot Springs, Ark., Capella has signed an Agreement in Principle with , Chesterfield, Mo., to form a consisting of Mercy in Hot Springs (formerly St. Joseph’s Mercy Health System) and Capella’s .

“We are continually seeking partners who recognize, as we do, that the future of healthcare is all about collaboration and innovation,” said Slipkovich.

Capella Healthcare partners with communities to build strong local healthcare systems that are known for quality patient care. Based in Franklin, Tenn., Capella owns and/or operates 15 acute care and specialty hospital facilities in seven states. With the philosophy that all healthcare is local, Capella collaborates with each hospital’s medical staff, board and community leadership to take care to the next level. The company has access to significant leadership and financial resources, investing in its family of hospitals to strengthen and expand services and facilities. For more information, visit the website, .

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All submitted financial documentation was tabulated and analyzed by . A sample of ’s tabulations were independently assessed by the accounting and management consulting firm of Deloitte & Touche, a subsidiary of Deloitte LLP, which provides audit, tax, consulting, and financial advisory services to companies of all sizes including a practice dedicated to middle-market firms.