CLARIAN HEALTH
Methodist-IU-Riley

LaPorte Hospital Becomes Part of Clarian Health

227-Bed Hospital Remains Locally Governed

"We are taking this decisive action now to ensure the viability of our organization in the future," said Timothy F. Larson, chairman of the board of directors of LaPorte Hospital. "We've chosen what we believe to be the strongest possible partner for our hospital".

By pooling our resources with Clarian Health, we can help to assure that those served by LaPorte Hospital will continue to have access to the kind of high-quality, full-service health care services they deserve."

Clarian Health is a private, not-for-profit organization formed last year when three Indianapolis based hospitals -- Methodist, Indiana University Hospital and Riley Hospital for Children - came together. Clarian Health is now one of the largest hospitals in the country.

Under the terms of the proposed agreement, assets of LaPorte Hospital, Lakeland Area Health Services, and VNA Home Care and Hospice would continue to be locally governed. But, as part of Clarian Health, those entities would have access to Clarian's greater resources and expertise.

The management at LaPorte Hospital would remain in place, with Clarian Health naming three of the 16 members of the Lakeland Health Corp. board. It is anticipated that the transaction will close by end of year.

As an initial collaboration, Clarian Health will provide an advance of up to $4 million, and LaPorte Hospital an additional $1 million, to develop new programs and services, to expand existing services and to expedite joint efforts.

"We're honored that LaPorte and Lakeland Health Corporation have chosen to join the growing Clarian Health family," said Clarian Health Board Chairman John Walda. "By choosing Clarian Health, LaPorte health care leaders have shown they share our commitment to Indiana-based ownership and locally-based health care decision making."

Clarian Health President and CEO Bill Loveday explained why his organization was eager to work with Lakeland:

From Clarian's perspective, we gain a high quality, financially strong, Northwest Indiana health partner in our quest to stgrengthen health care by Hoosiers, for Hoosiers."

Dr. Hester Muller, chairperson of the Lakeland Health Corp. Board of Directors, said the decision to become part of Clarian Health was the result of more than three years of careful evaluation and negotiation.

Dr. Muller indicated that she and her fellow board members felt the tremendous clinical resources of the Clarian Health organization and the Indiana University School of Medicine would be of significant benefit in assuring that the local health care system will offer area residents the highest quality of cost-effective health care.

LaPorte Hospital was created in 1966 by a merger of Holy Family Hospital and Community Hospital.

LaPorte Hospital President and CEO Leigh Morris said teams made up of employees, physicians and board members will soon begin planning how the transition to the new relationship should occur. Morris said none of the hospital's current programs or services will be affected during the transition period.

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