Clifton-Fine Hospital Star Lake, New York

News Release #13-001 February 7, 2013 FOR IMMEDIATE RELEASE Contact: Robert Seamon, CEO, CFH (315) 848-4260 Krista Kittle, SMC (315) 785-4504

CLIFTON-FINE HOSPITAL ANNOUNCES DECISION FOR FORMAL AFFILIATION WITH SAMARITAN MEDICAL CENTER Deal Expected to be Finalized This Summer
Star Lake, New York ----- After a thoughtful and deliberate process, the Board of Trustees and leadership of Clifton-Fine Hospital announce selection of Samaritan Medical Center as the preferred partner. Negotiations to formalize the affiliation are expected to conclude this summer. In the current healthcare environment, hospitals particularly rural providers like Clifton-Fine Hospital are facing unprecedented change. To be successful, hospitals must work together to cut costs, navigate an increasingly complex web of regulations, recruit physicians and deliver optimal and measurable quality of care, explains Walter Todd, Chairman, Clifton-Fine Hospital Board of Trustees. This announcement is the culmination of many months of strategic planning in an effort to respond to growing challenges. We have embarked on this journey with SMC to ensure that we remain a strong and vibrant hospital for the benefit of our patients, physicians, staff and community. As part of its strategic planning efforts, Clifton-Fine Hospital engaged Stroudwater Associates, a nationally recognized healthcare consulting firm. Stroudwater led the hospitals Board and leadership through careful planning and subsequent request for proposal (RFP) and selection process. Healthcare organizations are just beginning to experience the countless challenges that lie before us. In contrast to past practice, hospitals must be innovative in their thinking and find ways to collaborate rather than compete, explains Thomas H. Carman, President and CEO of Samaritan Medical Center. As the smallest hospital in New York State, Clifton-Fine Hospital is to be commended for its forward-thinking approach to ensure its ability to overcome these challenges and thrive for the good of the many tight-knit communities it serves, Both organizations acknowledge that there is much to be done in order to finalize their affiliation. Due diligence and negotiations are expected to begin immediately and continue until a mutually agreeable partnership can be finalized. "Throughout this process, we have made several trips to Star Lake and witnessed first-hand the dedication of the hospitals staff and efficiency of its operations, concludes Mr. Carman. We are proud to welcome CliftonFines staff, physicians and community into the Samaritan organization. There is much that we can learn from and share with each other in order to strengthen both organizations and communities. ###