Mercy Health System of Northwest Arkansas Announces Leadership Restructuring

Rogers, AR (July 10, 2006) - Effective immediately, a new leadership structure has been established at Mercy Health System of Northwest Arkansas (MHS-NWA). Susan Barrett, current president and chief executive officer, has been named to the position of President. George Flynn, current chief operating officer, has been named to the position of Chief Executive Officer. This new leadership model will enable MHS-NWA to better respond to the region's rapidly changing healthcare environment and support the many initiatives underway by the organization, including the construction of a new medical campus.

Both leaders have specific responsibilities assigned to their role, allowing them greater focus on activities and strategies that are critical to current operations and the future of Mercy in Northwest Arkansas:

• The responsibilities of the President focus on community relationships and activities, including all aspects of foundation and fundraising; developing and maintaining strong relationships with community members, leaders and employers in order to provide input into organizational strategies and engage community support; and maintaining relationships with legislators and government officials related to healthcare legislation and policy making. In addition, the President provides leadership in support of the completion of Mercy's new medical campus.
• The responsibilities of the Chief Executive Officer focus on direct operational leadership of MHS-NWA, to ensure that the organization is positioned to meet community health needs while achieving organizational goals related to quality and safety, medical staff relations, physician recruitment and retention, co-worker development and satisfaction, system integration, market share growth, operational integrity and financial stability.

"This leadership structure, while unique to healthcare, has been used in other organizations with great success. It enables a stronger and closer relationship with the community while also providing for a significant focus on operations," said Ron Ashworth, president and chief executive officer of the Sisters of Mercy Health System, the sponsoring organization of MHS-NWA. "Given the unique needs of the Northwest Arkansas service area, we believe this structure offers tremendous advantages and may well serve as a model for other healthcare organizations."

John Sullivan, executive vice president and chief operating officer of the Sisters of Mercy Health System, added, "Susan and George, by virtue of their exceptional skills and experience, are well suited to continue to lead MHS-NWA under this new model of leadership. Because of the strong relationship that they have established over the years, we are further ensured that their efforts will be closely aligned in support of Mercy and each other. We look forward to seeing this new partnership develop and thrive in meeting the healthcare needs of this region."

Susan Barrett said that she has been honored to serve as CEO, but the division of responsibilities allows her to focus primarily on how Mercy can best meet the community's healthcare needs.

"I want to see our vision through, and at this time this is the way I can do it best," said Barrett.

George Flynn said that he looked forward to his new role as CEO and fulfilling the promise Mercy made to provide the community with a destination for health and healing that is focused on patient safety and quality care.

"I am honored to carry on our transformation of healthcare in Northwest Arkansas," said Flynn.

Barrett joined MHS-NWA as president/CEO in February 1999 and previously served in leadership positions at Mercy Health System of Kansas, including five years as president/CEO.

Flynn has served on the leadership team of MHS-NWA since the fall of 2003. He has served in a variety of leadership positions throughout the Sisters of Mercy Health System since joining the organization in 1986.

Mercy Health System of Northwest Arkansas, a not-for-profit faith-based health system, provides healthcare services to residents in northwest Arkansas and southwest Missouri. The System includes St. Mary's Hospital, The Gardens at Osage Terrace Assisted Living Facility and Mercy Medical Clinics in 22 locations throughout northwest Arkansas and southwest Missouri. Mercy is currently constructing a state-of-the-art medical campus just east of Interstate 540 off of New Hope Road in southwest Rogers. When completed in 2007, the campus will include a 350,000-square-foot medical center with 200 beds and a medical office building to accommodate 90 physicians.

The Sisters of Mercy Health System (Mercy) operates hospitals, physician practices, outpatient clinics, health plans and related health and human services in a seven state area including Arkansas, Kansas, Louisiana, Mississippi, Missouri, Oklahoma and Texas. Mercy is the 9th largest Catholic health care system in the U.S. based on net patient service revenue and is sponsored by the Sisters of Mercy–St. Louis Regional Community.