PRV Province Healthcare Company

Province Healthcare Announces Disposition Of Florida Hospital BRENTWOOD, Tenn., Jan. 5 /PRNewswire-FirstCall/ -- Province Healthcare Company today announced that it has signed a letter of intent to permit the Palm Beach Healthcare District to reacquire Glades General Hospital in Belle Glade, Florida. The asset transaction is expected to close in the first quarter of 2004. Martin S. Rash, Chairman and Chief Executive Officer of Province, said, "At the time Province bought Glades General in 1999, both the Healthcare District and Province expected that ultimately the performance of this hospital would justify the construction of a replacement hospital to serve the western part of Palm Beach County. As a result, the Asset Purchase Agreement between the Company and the Healthcare District set thresholds of performance which, if achieved, would justify the start of the replacement hospital project. These thresholds have not been met, primarily because we did not receive the level of funding that was anticipated for indigent care and the recent economic downturn has hit the Glades area particularly hard." Christopher T. Hannon, Senior Vice President and Chief Financial Officer of Province added, "Glades General was profitable under Province ownership until the summer of 2003. Going forward, Province will see an improvement in EBITDA margin and in bad debts as a percentage of net revenue with the disposition of the hospital. Glades General will be reclassified as a discontinued operation and Province will recognize a non-cash charge to earnings in the fourth quarter 2003, the amount to be determined in accordance with the final terms of the transaction." Rash continued, "In trying to achieve the original goal of building a new hospital. Province invested capital adding a cath lab, a new women's center, an MRI, orthopedic surgery, and a women's clinic offering bone densitometry, needle biopsy and mammography. Numerous renovations and equipment upgrades were made. However, it is apparent now that the performance targets necessary for a replacement hospital will not be met in the foreseeable future. Province and the Healthcare District have been in discussions for the last few weeks and have reached an agreement." Province Healthcare is a provider of health care services in attractive non-urban markets in the United States. The Company owns or leases 20 general acute care hospitals in 13 states with a total of 2,281 licensed beds. The Company also provides management services to 37 non-urban hospitals in 14 states with a total of 3,043 licensed beds. CONTACT: Merilyn H. Herbert, Province Healthcare Company (PRV) at (615) 370-1377 DATASOURCE: Province Healthcare Company CONTACT: Contact: Merilyn H. Herbert, Vice President, Investor Relations of Province Healthcare Company, +1-615-370-1377 Web site: http://www.provincehealthcare.com/

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