GTCR and Capella Healthcare Announce Acquisition of Four HCA Hospitals

CHICAGO--Dec. 1, 2005--GTCR Golder Rauner LLC, one of the nation's leading private equity firms, today announced that Capella Healthcare has completed its acquisition of four hospitals from HCA, Inc. The four facilities include two in Tennessee and one each in Washington and Oklahoma.

This transaction marks the first hospitals in Capella's asset portfolio. Nashville-based Capella, which is funded by GTCR, was formed earlier this year by four former Province Healthcare executives: Daniel Slipkovich, Tom Anderson, Andrew Slusser, and Sam Moody.

"This is a significant event in the young history of our company and we are honored to have been entrusted with the future of these hospitals," said Daniel S. Slipkovich, chief executive officer of Capella. "Each of these hospitals is well positioned to provide quality healthcare services to the patients of its community."

The hospitals now owned by Capella are Grandview Medical Center, Jasper, Tenn.; River Park Hospital, McMinnville, Tenn.; Southwestern Medical Center, Lawton, Okla.; and Capital Medical Center, Olympia, Wash.

"Over the last several months, the Capella team has had the opportunity to visit with the outstanding healthcare professionals at each facility," said Tom Anderson, president and co-founder of Capella. "Thanks to the leadership already in place, we could not have found a stronger group of hospitals from which to build this company."

"GTCR is excited to have the opportunity to fund the platform acquisition for Capella. This is a unique set of assets with tremendous upside under the Capella management team," said GTCR Principal Joe Nolan.

Capella Healthcare and HCA entered into a definitive agreement for the hospitals in July of this year.

About Capella Healthcare

Based in Brentwood, Tennessee, Capella Healthcare is focused on acquiring and developing general acute care hospitals in non-urban areas within the United States. Capella Healthcare was founded in 2005 by former hospital company executives with over 100 combined years of management experience with over 200 hospitals in over 30 states. The company seeks to acquire and operate non-urban, general acute care hospitals and partners with communities that are growing or have service needs that are not currently being met. Capella's mission is to provide quality healthcare services in the communities it serves in an affordable and easily accessible manner. The company partners with communities to build strong local healthcare systems. Capella is backed by GTCR Golder Rauner, LLC, one of the nation's leading private equity firms.

About GTCR Golder Rauner, LLC

Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to build leading companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $6 billion of equity capital invested in a wide range of companies and industries. For more information, visit www.gtcr.com.