News Release

For immediate release
January 08, 2010

For more information contact

Marketing Strategies, Inc.
Denise Blackburn, APR or Sarah George, APR
(843) 692-9662
pr@marketingstrategiesinc.com


Strategic Alliance No Longer Under Consideration

Marion, SC--Marion Regional Healthcare System and McLeod Health have announced that
after a thorough review to explore a potential strategic alliance, a formal
affiliation is no longer under consideration at this time.

“We are committed to the well being of our patients,” said Don Lloyd, Chief
Executive Officer of Marion Regional Healthcare System. “Our goal is to
maintain quality health care through ongoing expansion of clinical
services.  After careful consideration, it was determined a formal
affiliation would not be necessary to achieve our objectives. McLeod and
Marion have a rich tradition of collaboration and cooperation. Both
organizations will continue to work together to provide medical services
that enhance the communities we mutually serve.”

"At this time, we have elected to continue an informal affiliation between
the two organizations," stated Rob Colones, President and CEO of McLeod
Health.  "We will continue to support one another in the provision of
outstanding health care for the people of this region. If health care
reform improves the conditions for a stronger affiliation, then we are both
open to beginning discussions again at some time in the future."

Mr. Colones added, "In the meantime, we will continue to explore with
Marion Regional opportunities for the expansion of clinical services, such
as orthopedics and cardiology, in Marion County."

In 1995, McLeod assisted Marion with the construction of its hospital by
funding the debt reserve on the bond issue that financed the construction.
More recently, both hospitals have worked together to strengthen clinical
services in the region. During the past few months, both organizations
studied the possibility of strengthening their exiting relationship through
a more formal affiliation in consideration of  impending health care
reform, reimbursement changes and the recruitment of physicians to the
areas the organizations serve.   

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