Valley Baptist Signs Agreement to Purchase Brownsville Medical Center

BROWNSVILLE, TEXAS - May 17, 2004 –  Valley Baptist Health System announces today the signature of a definitive agreement to purchase Brownsville Medical Center. Valley Baptist looks forward to working with the medical staff at BMC, along with the community to continue to provide high quality care and expand services.

James G. Springfield, President and Chief Executive Officer for Valley Baptist Health System, said “Brownsville is a growing, thriving community, and we want to support the growth the area is experiencing.”

Valley Baptist signed this agreement to purchase Brownsville Medical Center from Tenet Healthcare Corporation. Brownsville Medical Center is a 243-bed hospital that has provided a broad range of quality medical and health care services to the Brownsville community since 1923. There are currently close to 900 employees working at BMC. Under the agreement, Valley Baptist has committed to offer employment to substantially all Brownsville Medical Center employees in good standing.

Valley Baptist’s presence in Brownsville will mean greater convenience for Cameron County residents who are already receiving medical services from Valley Baptist. Mr. Springfield often reiterates, “We exist for no other reason than to serve the Valley community.”

“I believe this is an excellent opportunity for Brownsville Medical Center,” said Joe Thomason, CEO of Brownsville Medical Center. “Valley Baptist is a well-established, financially-strong, community-oriented hospital system with a reputation for providing quality health care services. Together, we will be well positioned to continue BMC’s mission of serving the Brownsville community with quality, compassionate care.”

Growth is a strategic initiative for Valley Baptist and the long term plan includes continued regional growth. Valley Baptist recently purchased 22.6 acres in Sharyland Plantation in Mission with plans to build a hospital for the greater convenience of Upper Valley patients.

Mr. Springfield also noted that the new relationship between Brownsville Medical Center and Valley Baptist Health System means that Brownsville Medical Center will soon “be locally owned and operated.” Valley Baptist is one of the largest medical systems in South Texas with approximately 600 beds and has served the Harlingen area and the Rio Grande Valley community since 1925.

The sale of Brownsville Medical Center is expected to be completed by June 30 and is subject to the customary approvals.