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Promise Hospital of Phoenix Relocates to Phoenix Memorial Healthcare Center Campus

June 12, 2007

Promise Hospital of Phoenix, a long-term acute care (LTAC) hospital, relocated to the Phoenix Memorial Healthcare Center Campus at 1201 South 7th Avenue, Phoenix, Arizona. The announcement was made jointly by Peter R. Baronoff, Chairman and Chief Executive Officer, and Howard B. Koslow, President and Chief Operating Officer of Promise Healthcare, Inc., one of the largest LTAC hospital companies in the country. Employing more than 2,000 staff members nationwide, Promise Healthcare owns and manages 14 facilities (including Promise Hospital of Phoenix) in six states with new locations under construction or development.

According to Baronoff, the 22,428-square-foot, 40-bed Promise Hospital of Phoenix now occupies the fourth floor of the former Phoenix Memorial Hospital building, and plans to expand to 57 beds in the near future. With the move, the hospital increased its bed capacity with 28 general acute beds (primarily private rooms), and an Intensive Care Unit (ICU) that includes an additional 12 beds (all private rooms), the latter a level of service not previously offered by Promise at its prior location.

Opened in May 2003 and operating as a 36-bed “hospital within a hospital” in St. Luke’s Medical Center until today’s relocation, the Medicare-certified Promise Hospital of Phoenix provides acute medical management and treatment specifically designed for patients who require a longer acute care hospital-based recovery period for unresolved, chronic illnesses, and multi-system disease processes due to severe illness or injury. Utilizing an interdisciplinary approach to treatment, the LTAC hospital provides aggressive therapy integrated with acute medical care to achieve optimum outcomes for patients requiring critical medical care for ventilator dependency and weaning, cardiomyopathy and congestive heart failure, head trauma, complications resulting from surgery, infectious disease, comprehensive and complex or aggressive wound care management, etc. On-site services include hemodialysis; ICU services; diabetes management; physical, occupational and speech therapy; pharmacy services, and chaplaincy.

Baronoff noted that the relocation provides Promise with a tremendous opportunity to fill a significant healthcare void in downtown Phoenix, and at the same time permits Promise to operate where many thought the hospital would have to vacate the market due to federal restrictions imposed by Centers for Medicare & Medicaid Services (CMS) on co-located LTAC hospitals within facilities like St. Luke’s Medical Center. He added that, “Promise greatly appreciates its relationship with St. Luke’s Medical Center, the years of support it has given Promise, and its continued assistance and understanding throughout this transition.”

“At our new location we have increased our bed capacity and expanded LTAC services based on the burgeoning demand in Greater Phoenix for increased quality care for high acuity LTAC hospital patients requiring extended recovery periods for the treatment of life’s most serious illnesses and injuries,” said Baronoff. “Additionally, our new facility is more conveniently located to better accommodate physicians and encourage frequent visiting by families and friends.”

Promise Healthcare, Inc. President and Chief Operating Office Howard B. Koslow noted that, “In addition to responding to the location limitations resulting from the new CMS rules, our decision to relocate Promise Hospital to the Phoenix Memorial campus was also in large part due to Promise’s vision to be a stronger part of the Phoenix healthcare community.”

“Our entire team of physicians and allied healthcare professionals has joined us at our new location as we welcome the affiliation of additional local physicians, ancillary professionals, and staff members to assist in delivering the highest level of personalized, compassionate, high acuity care in the most effective, efficient, and appropriate manner,” added Promise Hospital of Phoenix Senior Vice President and Chief Executive Officer Richard Luna. “At Promise, our patients are visited daily by their physicians who develop and direct individualized treatment plans to achieve recovery goals.”

St. Luke’s Medical Center CEO Paul Jenson said that, “Promise Hospital of Phoenix has brought to our community quality long-term acute care, and we look forward to continuing our relationship with Promise, understanding that its business decision to relocate from our facility was a direct result of CMS patient access limitations placed upon co-located LTAC hospitals.”

Promise Hospital admits patients with a physician referral from most settings, including short-term acute care (STAC) hospitals, intensive care units, med/surg units, skilled nursing facilities, assisted living facilities, home, and physician offices. Knowing that time is valuable and every minute counts when treatment is needed, Promise’s team of area clinical liaisons provide timely evaluations of patients to determine if they meet criteria for our LTAC hospital services.

“We are pleased to have Promise Hospital of Phoenix join in our transformation of the Phoenix Memorial campus as a significant part of a collaborative community effort to bring enhanced comprehensive health care services to downtown Phoenix,” said Dan F. Ausman, President and Chief Executive Officer of Abrazo Health Care. “Promise Healthcare is a respected and proven industry leader in acute long-term care, and having Promise Hospital on our Phoenix Memorial campus means greater community access to its exemplary extended-stay hospital expertise and care.”

Promise Healthcare, Inc. Executive Vice President of Hospital Operations Richard Gold reinforced that, “The Promise name reflects a commitment to patients, physicians, hospital staff, and the Greater Phoenix area and surrounding counties. Accordingly, we support our local hospital team with the vast and diversified national business and healthcare industry resources, leadership, financial resources, and management acumen of Promise Healthcare, Inc.”

Promise Hospital of Phoenix, Inc. is located at Phoenix Memorial Healthcare Center at 1201 South 7th Avenue, Phoenix, AZ 85007. For more information, contact (602) 716-5000 or visit www.promise-phoenix.com.

To Grow and Expand Quality Long-Term Acute (LTAC) Hospital Care

To Best Serve The Greater Phoenix Community




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