Date: 10/18/2001

Management team, board appointed to direct new health system in Northwest Indiana

Community Foundation of Northwest Indiana (CFNI) announced today additions to its board and management to provide leadership for the newly created health system.

A new corporate name and structure was approved following the acquisition of two Northwest Indiana hospitals from Ancilla Systems Inc., of Hobart. Formerly, the organization was known as Community Foundation, the parent company of The Community Hospital in Munster, Ind.

The three hospitals — Community Hospital, St. Catherine Hospital in East Chicago and St. Mary Medical Center in Hobart — will now be operated by CFNI under the banner, Community Healthcare System. Included in this broad network of health services are many clinics and physician offices.

Officers for CFNI were reaffirmed in meetings held this morning: Donald S. Powers, President; Hon. James Richards, Vice President; David Wickland, Treasurer; and Frankie Fesko, Secretary.

The leadership of this new corporation will also include four newly appointed board members from Ancilla: Monsignor Joseph Semancik, pastor of Sacred Heart Catholic Church in East Chicago, and former director of Catholic Charities; Sr. Kathleen Quinn, a Poor Handmaid of Jesus Christ and Chairperson of Ancilla Systems Inc.; and Robert Welsh, Chairman of the Board of Welsh, Inc. and Ed Williams, Director of Community Relations for Harrah’s East Chicago Casino.

In addition to the new board representatives, two senior vice presidents were hired to direct the activities of the integrated health system: John C. Gorski, Senior Vice President of Hospital Operations; and David W. McCoy, Senior Vice President and Chief Financial Officer. Mr. Gorski and Mr. McCoy have each about 20 years experience in hospital administration at Community Hospital. Mr. Gorski was formerly the hospital’s Division Director for Ancillary Services and Mr. McCoy was Division Director for Financial Services and Chief Financial Officer.

Vernon Groeber has also been named Vice President of Information Technology and Chief Information Officer for CFNI. Mr. Groeber brings to the organization 22 years in healthcare and information technology, most recently serving as the Associate Chief Information Officer for the Alverno Information Services in Indianapolis.

The administrators of the three hospitals will continue to direct their respective institutions, bringing to the new organization a wealth of experience in healthcare. Edward P. Robinson, Administrator of Community Hospital, will share an additional responsibility as Administrative Assistant for New Projects for CFNI. St. Mary Medical Center Administrator Milton J. Triana and St. Catherine Hospital Administrator JoAnn Birdzell will provide ongoing leadership to their hospitals. John Mybeck will continue to serve as Administrative Assistant to the President for CFNI, having held this position for 15 years.

Board of Directors for all three hospitals met this morning to elect officers and to appoint representation from CFNI to each of the boards. The officers who will serve at Community Hospital are as follows: Donald S. Powers, President; St. Catherine’s Hospital Board of Directors elected: St. Mary Medical Center’s Board of Directors elected:

“What is significant about the leadership of this new organization is the fact that the majority of these individuals have devoted many years to providing quality healthcare in this community,” said Donald S. Powers, President of CFNI. “As we move forward to meet the challenges of the next century, we will be guided by some of the same visionaries and visions that have made the foundation’s services and programs most preferred by both patients and physicians.”