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Orange Regional Medical Center Breaks Ground on New State-of-the-Art Hospital

July 1, 2008

– 374-Bed Facility to Be First Hospital Built in New York State in Over 20 Years –

(Middletown, New York) — On Wednesday, June 18, before a crowd of more than 350 people including civic leaders, elected officials, major donors, and staff members, Orange Regional Medical Center ceremoniously broke ground on a new $317 million dollar state-of-the-art hospital that will be the first community hospital built in New York State in more than 20 years.

The seven-floor, 354-room hospital, which is being built on 61 acres in the Town of Wallkill, will be one of the largest medical centers between the Tappan Zee Bridge and Albany. The new hospital, which will be completed in 2011, will provide a broad range of high-quality health care services including general adult and pediatric medical/surgical beds, intensive care, maternity, orthopedics, oncology, and a 50-bay emergency department.

Scott Batulis, Chief Executive Officer of Orange Regional Medical Center said, “The entire hospital family is excited and energized to see the start of a terrific new hospital. This new facility will improve health care, not just for Orange and Sullivan Counties, but for the entire region. The new Orange Regional Medical Center will offer increased access to specialized care, accommodate new technologies, new services and attract even more excellent physicians.”

Ginny Rizzo, Chair of Orange Regional Medical Center’s Board of Directors said, “The Board of Directors has been working tirelessly toward our mission of ensuring great health care for our community. We are proud to launch the construction of the new hospital. This hospital will bring high-quality healthcare to the thousands families who call the beautiful Hudson Valley ‘home’. This is truly a team effort that will require continued support from everyone the hospital serves. Because this hospital benefits the entire region, we want every person to feel a sense of ownership in this exceptional project. By working together, we can make sure we have magnificent health care for present and future generations.”

Cynthia Lowe, Chair of the Orange Regional Medical Center Foundation, announced the start of the public phase of a $21 million capital campaign. To date, $14.5 million has been raised during the “quiet” phase of this campaign. Several donors were recognized for their philanthropic generosity including a remarkable lead gift from Alan and Sandra Gerry. In recognition of the Gerry’s gift, the main building of the new hospital will be named in their honor.

Lowe said, “It is so important for the people who depend on Orange Regional to consider supporting it financially. Healthcare costs continue to rise, and the challenge the hospital faces in making the most state-of-the-art technology and treatment available to its patients is not possible without the generous support of our contributors.”

Leading the charge is John Galanti, Chairman of the Capital Campaign. “The new Orange Regional Medical Center will truly be a catalyst for bringing enhanced healthcare to our region. This project will create a superb new physical environment, here in Orange County, which will allow healthcare providers locally to deliver the services and specialties required of our growing community. A project of this magnitude and importance deserves the support of the entire community, and I am proud to serve as Chairman of this most worthwhile endeavor.”

The hospital’s Capital Campaign affords a unique opportunity for the entire community because donations can be designated for a specific area of the hospital, including major naming gifts. The community has a chance to be part of history by helping to build a new hospital to serve Hudson Valley families today, and well into the future. There are opportunities for donations at all levels, including pledges that can be paid over a 3-5 year period. Community members interested in donating to the new hospital project can visit www.ormc.org or call the Foundation office at 294-2204.

Orange Regional Medical Center was created in 2002 through the merger of Horton Medical Center in Middletown and Arden Hill Hospital in Goshen. Consolidating the two facilities, which are eight miles apart, and downsizing by 76 un-used beds, it is one of the first and one of the largest rightsizing projects to move forward in response to the mandate of the New York State Berger Commission. The Medical Center has approximately 550 doctors and nearly 2,600 employees making it the second largest employer in Orange County, just after West Point. The hospital serves over 21,000 inpatients annually, and accommodates 60,000 Emergency Room visits and over 800,000 outpatient visits.

The total cost of the new hospital project is $317 million. Of that, $255 million is for construction and the balance is related to financing fees. Approximately $261 million of the project cost is being funded by tax-exempt bonds that will be repaid from the hospital’s annual operations. The balance is being funded by a substantial hospital equity contribution including the proceeds from the sale of the two existing campuses and a $21 million capital campaign. Orange Regional Medical Center has also been awarded $48.6 million in HEAL NY funds to assist with planning and construction. HEAL stands for the Health Care Efficiency and Affordability Law, New York State’s initiative to reconfigure and reform the health care delivery system statewide through greater efficiency and increased community benefits.

Today, 25% of Orange County patients travel one to two hours either to Westchester or New York City to access specialty services. The goal for the new Orange Regional facility is to meet 95% of the medical needs of the residents of its core service area—which includes Orange County and a good portion of Sullivan County —so that no one will have to travel to Westchester or New York City for health care unless it is to seek highly specialized services.

With this objective in mind, Orange Regional Medical Center has directed the savings from combining the two campuses to the development of regional services—including a Bone and Joint Center, an Oncology Center, a 64-Slice CT Scan, diagnostic cardiac catheterization, and, most recently, Emergency Angioplasty, the first in Orange County. As the new Orange Regional Medical Center is being constructed, there are also plans for a Neonatal Intensive Care Unit, a Neurosciences Center, a Level 2 Trauma Center and Elective Angioplasty.

Updates on the progress of construction and other information about the current and future Orange Regional Medical Center can be accessed at www.ormc.org.

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