Date: 3/3/2003

Construction begins on new hospital with St. Catherine Hospital

Construction has begun on a new long-term acute care unit at St. Catherine Hospital in East Chicago that will provide specialized care for patients with complex, long-term medical conditions.

The development is significant because the service has not otherwise been provided by any Community Healthcare System hospital.

“This means that patients with complex, long-term medical conditions who once had to leave Community Healthcare System for care will now have access to the same quality medical care they are accustomed to and deserve, close to home,” said John Gorski, senior vice president of hospital operations for Community Healthcare System.

This “hospital within a hospital” will be called Regency Hospital of Northwest Indiana, LLC, an independently owned and operated facility inside St. Catherine Hospital. The unit will have its own medical, business, administration and finance staff, with support on a contractual basis from St. Catherine Hospital’s ancillary services. The support services include housekeeping, food and nutrition services, basic maintenance, diagnostic imaging, surgical and emergency services, nuclear medicine, lab and others.

Nearly 15,000 square feet of space is being renovated to accommodate this 38-bed acute care facility. Community Healthcare System will invest about $1.3 million in construction; Regency Hospital will equip the unit with the necessary medical equipment. The unit is expected to open in mid July.

“This ‘hospital within a hospital’ complements the rehabilitative services offered through Community Healthcare System, including acute rehabilitation and transitional care,” Gorski says. “By investing in services such as Regency Hospital, we’re helping to extend and strengthen the health care continuum that cradles our community.”


Page 2 - Regency Hospital

Regency Hospital of Northwest Indiana at St. Catherine Hospital will care for those who experience complex medical complications due to a severe injury or illness. Medical professionals will have the special training and equipment to care for patients who have suffered long-term effects of a stroke, need ventilator assistance, have infections that require intensive treatment, or are suffering from medical complications after a major trauma.

Regency Hospital is one of five major capital development projects totaling more than $10 million that Community Healthcare System has completed at St. Catherine Hospital since acquiring the facility in October of 2001. Other improvements include a new chiller plant, an acute rehabilitation center, a new pediatric unit and a new centralized location for Community Healthcare System information technology services. In recognition of its efforts to improve not only the facility, but the community, The Lakeshore Chamber of Commerce recently awarded St. Catherine Hospital an Economic Development Award.