September 2003

Catholic Health Initiatives Signs Letter of Intent to Purchase Assets of Innovis Health

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Innovis Health, Fargo, N.D., is proceeding with plans to sell its assets to Catholic Health Initiative. The 74-bed hospital, opened in November 2000, is currently owned by a not-for-profit, taxable corporation of which Dakota Clinic and Blue Cross Blue Shield of Minnesota are members.

"We have put a lot of thought into the decision to partner with Catholic Health Initiatives," said Russ Kuzel, MD, board chair of Innovis Health. "Catholic Health Initiatives sees us as a progressive, state-of-the-art health care provider in a growing, vibrant market. We see Catholic Health Initiatives as a solid regional partner with the vision and resources necessary to help Innovis achieve its long-term goals."

With the sale, Blue Cross Blue Shield of Minnesota will no longer have an ownership interest in Innovis Health. Catholic Health Initiatives will work closely with Dakota Clinic during the coming months to define the Clinic’s continuing relationship with Innovis.

"We are pleased to be able to extend our ministry in North Dakota and look forward to building on the successes of Innovis Health," said Kevin Lofton, president and chief executive officer of Catholic Health Initiatives. "Catholic Health Initiatives will work with the employees, medical staff and leaders of this community to ensure Innovis Health is a leader in providing quality health care services to Fargo and the surrounding area."

Transfer of the ownership of Innovis Health’s assets to Catholic Health Initiatives is expected to occur during the first quarter of calendar year 2004.