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Baptist Health System Announces Plan to Build New Hospital at Brooks City-Base

Vanguard Health Systems, Inc. and its affiliate Baptist Health System (BHS) today announced that BHS has signed a letter of intent to acquire land to relocate Southeast Baptist Hospital to Brooks City-Base. The transaction is subject to executing definitive agreements and obtaining approvals by the Board of Directors of Vanguard Health Systems and Brooks Development Authority. The new hospital will initially be sized for 175 beds and will be easily accessible from I-37 and Military Highway. The current facility will continue to serve the community, providing ancillary healthcare services.

Baptist Health System president and CEO Kent Wallace said locating the Southeast Baptist Hospital at Brooks City-Base has many advantages. "Baptist Health System made a commitment to the south side more than 30 years ago and this announcement makes clear our desire to expand state-of-the-art health care service to this growing and vital part of our community," Wallace said. "Building a new facility from the ground up, rather than remodeling the existing building, gives us the opportunity to more efficiently design hospital space to accommodate the newest technology. This hospital will be designed to grow with the community well into the 21st century. And, given the recent BRAC announcement, we're also excited to be part of the revitalization and redevelopment of Brooks," Wallace added.

"Since the inception of Brooks City-Base, the medical and bioscience industries have been a key redevelopment target," said Howard Peak, chairman of the Brooks Development Authority. "The new Southeast Baptist Hospital will be a perfect fit for Brooks and add to the on-going success of the City-Base concept. Equally important to Brooks City-Base is the fact this new hospital will bring a much needed improvement to the medical facilities and services offered to the residents of southeast San Antonio."

Tom Rumora, executive director of the Brooks Development Authority added, "I am not aware of any other BRAC-listed facility in the nation that is close to announcing an agreement as significant as Baptist Health System's decision to build a new hospital at Brooks City-Base. Coupled with the recent groundbreaking by DPT Laboratories, this letter of intent is a clear indication that the City-Base concept is a success. It took cooperation between the Brooks Development Authority, Baptist Health System and the Air Force to make this project a reality."

Bexar County Judge Nelson Wolff and Commissioner Tommy Adkisson also took an active role in early discussions to bring about the potential partnership. "This is just the best case scenario all the way around," said Wolff. "Bringing expanded healthcare to this area of San Antonio and the county is a huge positive as is the redevelopment at Brooks, especially in light of the BRAC announcement. I am just thrilled at the possibilities," added Wolff. Commissioner Adkisson echoed those feelings. "This will mean so much to people living in southeast Bexar County," said Adkisson. "The south side needs and deserves its own state-of-the-art medical complex, so this is just what the doctor ordered."

The new hospital will serve patients in southeast San Antonio and Bexar County, replacing the aging Southeast Baptist Hospital campus which has been serving the south side community since 1971. Southeast Baptist Hospital CEO Rick Marsh said the existing facility will continue to serve as a healthcare resource for the community. "We are visiting with our physician partners and community leaders to determine exactly which services will be most beneficial to provide here at the Southcross location," Marsh said. "The new hospital will allow us to expand our much-needed acute care and emergency services."

Dr. Jeffrey Glass, Chief of Staff at Southeast, has expressed his enthusiasm for the project. "Our patients deserve and expect a state-of-the-art facility where the best of medical care is delivered. This will be an awesome opportunity to implement the latest in technology and hospital design for the benefit of patients, employees and our medical staff."

The new hospital will bring 700 to 800 jobs to the south side and represents a significant economic investment in the community. Initial plans are to construct a five-story hospital with the capability of adding additional floors and square footage as healthcare needs on the south side grow. Ultimately, the hospital could grow to over 400-beds. Assuming timely approvals, groundbreaking is expected to take place in mid 2006 with grand opening slated for late 2007 or early 2008.

About Baptist Health System

Baptist Health System is a leading provider of health care in San Antonio and South Texas. Baptist Health System includes five faith-based, acute-care hospitals (Baptist Medical Center, North Central Baptist Hospital, Northeast Baptist Hospital, Southeast Baptist Hospital and St. Luke's Baptist Hospital) that offer 1,537 licensed beds.

The system also includes Baptist Regional Children's Center, Baptist Women's Health Center, HealthLink wellness and fitness center, Baptist M&S Imaging Centers, community health and wellness programs, ambulatory services, rehabilitation services, medical office buildings, San Antonio AirLife air medical transport, a teaching center (School of Health Professions), and other health-related services and affiliations.

Brooks City-Base

As the owner, operator, and developer of Brooks City-Base, the Brooks Development Authority is responsible for maintaining and redeveloping the 1,300-acre complex into a world-class technology center for bioscience, academic, environmental, and technical research.

The unique collaborations that take place at Brooks City-Base encourage technology-based economic development and will help create high-paying jobs and bright futures for San Antonio and South Texas.

Vanguard Health Systems, Inc.

Vanguard Health Systems, Inc. owns and operates 19 acute care hospitals and complementary facilities and services in Chicago, Illinois; Phoenix, Arizona; Orange County, California; San Antonio, Texas and Massachusetts. The Company's strategy is to develop locally branded, comprehensive healthcare delivery networks in urban markets. Vanguard will pursue acquisitions where there are opportunities to partner with leading delivery systems in new urban markets. Upon acquiring a facility or network of facilities, Vanguard implements strategic and operational improvement initiatives including expanding services, strengthening relationships with physicians and managed care organizations, recruiting new physicians and upgrading information systems and other capital equipment. These strategies improve quality and network coverage in a cost effective and accessible manner for the communities it serves.

Distributed by Market Wire