AYER, Mass. - The Massachusetts Department of Public Health, the Attorney General's Office of the Commonwealth of Massachusetts and the Supreme Judicial Court announced this week that they have approved the sale of Deaconess-Nashoba Hospital to Essent Healthcare Inc.

The Deaconess-Nashoba Board of Trustees, the CareGroup Board of Trustees and the Essent Board of Directors voted in September to support the change in ownership. This week's approvals mark the final step in the regulatory approval of the sale to Essent, which is expected to be effective January 1, 2003.

"Deaconess-Nashoba Hospital is an essential component of the local community," said Jeffrey R. Kelly, president and CEO of Deaconess-Nashoba.  "Essent Healthcare shares our belief in the importance of community hospitals, and their resources will allow us to continue providing quality health care to residents of the Nashoba Valley."

Essent has committed to invest at least $16 million to upgrade the hospital's physical plant, expand clinical services and recruit new physicians.  As part of the agreement, Essent and Beth Israel Deaconess Medical Center will collaborate to enhance the clinical services available at the hospital and to provide tertiary support for the hospital.

"The Nashoba Valley community recognizes the importance of a local hospital, and has been extremely supportive of Essent's purchase of Deaconess-Nashoba," said Hud Connery, President and CEO, Essent Healthcare.  "We are pleased and excited to become a member of the community, and are committed to providing the highest quality health care."

Essent's ownership of Deaconess-Nashoba will help the hospital achieve a number of important long-term objectives, including:

• Expanding hospital service areas and clinical programs (i.e. cardiology, oncology, emergency services, women's health and orthopedics)
• Funding capital improvements (i.e. upgrade the hospital's physical plant, invest in the development and marketing of new services, etc.)
• Recruiting new physicians
• Improving insurance contracts

Essent Healthcare
Essent Healthcare is a Nashville-based investor-owned hospital company led by Connery, the former chief operating officer for HealthTrust, which owned and managed more than 110 hospitals before being purchased by Columbia in 1995.  Connery launched Essent Healthcare in 1999 with the mission of acquiring hospitals that are essential to growing communities in rural and suburban markets and providing them with the financial resources and the expertise they need to grow.  Essent recently acquired Merrimack Valley Hospital (the former Hale Hospital) in Haverhill; the company also operates Sharon Hospital in Sharon, Conn., and Crossroads Regional Hospital in Wentzville, Mo.

Deaconess-Nashoba Hospital
Deaconess-Nashoba Hospital is a founding member of CareGroup, a health care system including the world-renowned Beth Israel Deaconess Medical Center and New England Baptist Hospital. As a trusted member of the community since 1964, the hospital prides itself in providing high quality care and health education programs to the communities it serves.

Beth Israel Deaconess Medical Center
Beth Israel Deaconess Medical Center is a major patient care, research and teaching affiliate of Harvard Medical School and a founding member of CareGroup Healthcare System. Beth Israel Deaconess is the third largest recipient of National Institutes of Health research funding among independent U.S. teaching hospitals. The hospital has 526 licensed beds. 

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