CARTHAGE AREA HOSPITAL TRANSITIONS SERVICES AT TWO CLINICS TO QUALIFY FOR CRITICAL ACCESS DESIGNATION

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June 30, 2014

Carthage, New York----- As part of its recovery plan, Carthage Area Hospital has applied to the New
York State Department of Health to become a Critical Access hospital, a change "that will enhance
reimbursement rates and increase revenue for the facility. In order to qualify for Critical Access
status, Carthage Area Hospital is required to meet certain criteria, including proximity of its facilities
to surrounding hospitals being greater than 15 miles. Two of Carthage Area Hospital's primary care
clinics (Evans Mills and Adams) are located within 15 miles and therefore must be transitioned in
order to qualify for the new designation.

The transition includes:
• Closure ofthe Evans Mills Family Health Center- All providers and services will be available
at the Carthage Area Hospital's Family Health Center located at 117 N. Mechanic Street in
Carthage. Patients can continue to receive care at the Carthage location, if they choose to
do so.
• Transferring ownership of the Adams Community Health Center to Samaritan Medical
Center- This clinic will remain open in the same location at 10881 NYS Route 11, Adams
with SMC assuming operations effective July 2, 2014.

Carthage Area Hospital hopes to receive Critical Access Designation within the next few weeks.

As announced in late March, Carthage Area Hospital and Samaritan Medical Center plan to form an
affiliation, which is expected to be complete in late 2014 or early 2015. Management and Trustees
from both facilities have been in close discussions to complete due diligence and have begun
developing a strategic plan in preparation for the affiliation. The facilities have engaged KPMG
Healthcare and Life Sciences to lead the strategic planning process with a final report due in late
August.

Contact:
Natalie Burnham, CAH
(315) 493-0114

Krista Kittle, SMC
(315) 785-4504

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