Statement from Inova Health System and Prince William Health System about the Proposed Merger

(June 6, 2008) – After careful consideration and by mutual agreement, Prince William Health System and Inova Health System have decided to withdraw their plans for a merger. A challenge and unusual process changes by the Federal Trade Commission threatened to prolong completion of the merger by as much as two years, which both health systems believe is not in the best interest of the communities they serve.

The proposed merger would have resulted in more than $200 million in much-needed and immediate investment by Inova in the Prince William Health System. As a result, families in Prince William would have seen quick and dramatic changes in expanded patient-care services in the community.

Though the decision is a difficult one to make, both health systems will move forward independently and continue to fulfill their not-for-profit community missions of building high-quality, accessible and sophisticated healthcare services for the communities they serve.

Inova Health System is a not-for-profit healthcare system based in Northern Virginia that consists of hospitals and other health services, including emergency- and urgent-care centers, home care, nursing homes, mental health and blood donor services, and wellness classes. Governed by a voluntary board of community members, Inova’s mission is to improve the health of the diverse community it serves through excellence in patient care, education and research. Inova provides a healthy environment for its patients, families, visitors, staff and physicians by prohibiting tobacco use on its campuses.