Catholic Healthcare Venture Fund Expands Partner Base

(St. Louis) February 21, 2008 – Ascension Health announced today that Catholic Healthcare West (CHW) has become a limited partner in CHV II, LP, by acquiring a portion of Ascension Health’s commitment to this $200 million venture capital fund focused on making venture investments in the healthcare industry.  CHW joins other limited partners Ascension Health, Catholic Health Initiatives and Catholic Health East, who participated in the first closing of the fund which was announced in October.  Ascension Health Ventures, LLC (AHV), a wholly-owned subsidiary of Ascension Health, is the general partner providing management services to the limited partnership. 

“We are pleased to join this effort and optimistic about the possibilities that strategic investing can offer to a ministry like ours,” said Lloyd Dean, President/CEO of Catholic Healthcare West. “Our first priority is always the health and well-being of the communities we serve.  Investing in the technologies and resources that have the potential to improve the lives of millions of people nationwide is very much aligned with who we are.”   

CHV II is the second captive strategic venture fund for Ascension Health and the first for the other Catholic systems.  In 2001, Ascension Health launched AHV with $125 million to invest in healthcare venture capital with the intent of earning financial returns to support its mission.  In addition to financial returns, Ascension Health has realized significant strategic benefits through access to AHV’s in-depth research and line of sight into future innovations, while Ascension Health facilities have adopted numerous products, technologies and services that have been referred by AHV. 

Since CHV II’s first closing, the fund has made three direct investments and one commitment to another healthcare venture fund.  CHV II will continue the investment strategy of AHV’s first fund, targeting expansion to later stage medical device, healthcare technology and healthcare service companies in areas of interest to the limited partners.  A portion of the fund will also be committed to other healthcare venture funds.

“We are excited to welcome Catholic Healthcare West as a limited partner in CHV II,” said Anthony R. Tersigni, EdD, FACHE, President and CEO, Ascension Health.  “The fund now includes the four largest Catholic health systems in the country.  In addition, CHW expands our footprint into California, the largest state for venture investing in the U.S.  Working with other Catholic healthcare organizations benefits us all and supports our ability to perform and transform. All told, the limited partners of CHV II represent 200 acute care facilities and numerous other non-acute facilities in all geographical regions of the U.S.”

About Ascension Health Ventures and CHV II

Ascension Health Ventures, LLC (www.ascensionhealthventures.org) was launched in 2001 as a wholly-owned subsidiary of Ascension Health. AHV’s role has been to construct and manage a strategic portfolio of investments that deliver a venture investment return, have the potential to transform the healthcare industry and significantly enhance the quality of patient care.  CHV II, LP, a limited partnership between Ascension Health, Catholic Health Initiatives, Catholic Health East and Catholic Health West, has been formed to expand this strategic investment initiative to other Catholic healthcare systems.  AHV is the general partner of CHV II, LP.

About Ascension Health

Consistent with its mission to serve all people with special attention to those who are poor and vulnerable, Ascension Health (www.ascensionhealth.org) is an innovative leader in transforming healthcare through patient-centered, holistic care of the highest clinical quality, and provided $808 million in care of persons who are poor and community benefit last year.  Ascension Health is the nation’s largest Catholic and nonprofit health system, with more than 106,000 associates serving in 20 states and the District of Columbia.  Ascension Health includes 77 hospitals and other related healthcare facilities.

About Catholic Healthcare West

Catholic Healthcare West (CHW), headquartered in San Francisco, Calif., is a system of 42 hospitals and medical centers in California, Arizona and Nevada. Founded in 1986, CHW is the eighth largest hospital system in the nation and the largest not-for-profit hospital provider in California.  CHW is committed to delivering compassionate, high-quality, affordable health care services in a compassionate environment that is attuned to every patient's physical, mental and spiritual needs.  The CHW network of more than 8,500 physicians and approximately 50,000 employees provides quality health care services during more than four million patient visits annually. In 2006, CHW provided more than $465 million in community benefit and free care for the poor.

About Catholic Health Initiatives

Catholic Health Initiatives (www.catholichealthinit.org) is a national non-profit health corporation based in Denver, Colo. The health system includes 73 hospitals; 42 long-term care, assisted and independent living and residential facilities; and two community-based health organizations located in 19 states.  Catholic Health Initiatives represents approximately 65,000 employees and total revenues of almost $8 billion. It is the second-largest Catholic health system in the United States.  Catholic Health Initiatives thrives on its vision of Catholic healthcare as a vibrant ministry, ready to provide compassionate care of minds, bodies and spirits through the 21st century and beyond.

About Catholic Health East

Catholic Health East (www.che.org) is a multi-institutional Catholic health system, which is co-sponsored by 12 religious congregations, and Hope Ministries, a Public Juridic Person within Catholic Health East. Based in Newtown Square, Penn., the System provides the means to ensure the continuation of the Catholic identity and operational strength of the sponsors' health ministries, which are located within 11 eastern states from Maine to Florida.  The System includes 34 acute care hospitals, 4 long term acute care hospitals, 36 freestanding and hospital-based long term care facilities, 12 assisted living facilities, 5 continuing care retirement communities, 7 behavioral health and rehabilitation facilities, 25 home health/hospice agencies, and numerous ambulatory and community-based health services. Catholic Health East facilities employ approximately 50,000 full-time employees as partners in ministry.

© Ascension Health Ventures