TAZEWELL COMMUNITY HOSPITAL TO JOIN CARILION CLINIC

ROANOKE, Va. (January 23, 2008) The Tazewell Community Hospital Board of Directors has approved a proposal for the hospital to join Carilion Clinic. This is the final step in a long, successful relationship between TCH and Carilion, which has provided management services to TCH for 27 years. Becoming a part of Carilion Clinic will secure a stable future for the hospital and improve its ability to attract physicians to the region, while maintaining its not-for-profit status and commitment to the community’s health.

“The board made this decision after long and careful consideration of the best interests of our patients and the community,” said TCH Board Chairman Jim Thompson. “Carilion has an excellent track record of investing in its hospitals, and in the communities they serve. Tazewell Community will continue its tradition of service and quality, and the hospital Foundation will be able to expand its important community development role.”

“We have enjoyed close ties with Tazewell Community Hospital and its patients for 27 years,” said Edward G. Murphy, MD, Carilion Clinic President and CEO. “We share the hospital’s commitment to the community and look forward to working together to improve the quality of care and the quality of life the region.”

Carilion Clinic will make a significant investment in capital spending at TCH over the next 5 years, funding important renovation projects and new equipment. TCH will be in line to receive Carilion’s new electronic medical record system, and will eventually be linked to all Carilion facilities and physician offices. Carilion Clinic will also make a financial contribution to the Tazewell Community Hospital Foundation. The total value of the transaction is approximately $15 million.

There will be no immediate impact on employment at TCH and there will be no reduction in staffing related to patient care. Pending approval by the Attorney General’s office, the transaction will be officially completed this spring.

About TCH

Tazewell Community Hospital began operations on November 26, 1973. The hospital currently has 56 licensed beds and 170 employees. In 2006 the hospital had 1121 admissions and provided $1.7 million in uncompensated care.