Carilion Clinic CEO Takes New Position

Carilion Clinic President and CEO, Edward Murphy, M.D. will step down June 30, 2011 to work with TowerBrook Capital Partners L.P., a New York- and London-based investment firm, as well as become Chairman of the Board of Sound Physicians. The Carilion Clinic Board of Directors has appointed Chief Operating Officer Nancy Howell Agee as the new President and CEO of the organization, effective July 1. (see accompanying news release regarding Ms. Agee’s appointment).

Dr. Murphy joined Carilion in 1998 as Chief Operating Officer, and became President and CEO in 2001. Among his numerous accomplishments, he led the organization through its transition from a hospital-based system to a multi-specialty clinic, including more than 600 physicians, hospitals and outpatient centers serving a million people in Virginia. The reorganization, focused on quality, safety and patient-centered care, laid the foundation for Carilion Clinic’s current groundbreaking work on an Accountable Care Organization. In addition, Dr. Murphy was instrumental in the creation of the Virginia Tech Carilion School of Medicine.

“Through Dr. Murphy’s leadership, we have taken a quantum leap forward in the delivery of care and will continue on this path to provide the best possible service to our patients”, said James Hartley, Chairman of Carilion Clinic’s Board of Directors.

Dr. Murphy will work with TowerBrook to acquire and develop businesses to assist physicians, hospitals and health care delivery systems with:

• physician management
• physician/hospital alignment and clinical coordination
• services needed for the development of Accountable Care Organizations (ACOs)
• Dr. Murphy will also join the Board of Sound Physicians as Chairman. Sound Physicians is a leading provider of hospitalist physician services focused on driving improvements in quality, satisfaction and efficiency of inpatient healthcare delivery.

“The decision to leave Carilion was difficult, but the time is right”, Dr. Murphy says. “At Carilion, the building blocks for successful transformation are in place, especially in light of our new relationship with Aetna. The organization is in good position to move forward with excellent, stable leadership. This opportunity with TowerBrook and Sound Physicians will allow me to work on hospital/physician integration and ACO development, nationally.”

“We are excited to work with Dr. Murphy,” said TowerBrook Managing Director Ian Sacks. “Dr. Murphy’s experience on the leading edge of healthcare integration and alignment will be an invaluable asset to TowerBrook in our health care endeavors.”

“Dr. Murphy is one of a handful of people at the forefront of the national transition in health care,” said Robert Bessler, M.D., Founder and Chief Executive Officer of Sound Physicians. “His experience and insight will help Sound Physicians maintain and enhance its focus on integrated, quality-focused patient care.”

Dr. Murphy will continue to serve on the Board and remain on the faculty of the Virginia Tech Carilion School of Medicine.

About Carilion Clinic

Carilion Clinic is a not-for-profit health care organization serving nearly one million people in Virginia through hospitals, outpatient specialty centers and advance primary care practices. Led by multi-specialty physician teams with a shared philosophy that puts the patient first, Carilion is committed to improving outcomes for every patient while advancing the quality of care through medical education and research. For more information, visit www.carilionclinic.org/about.

About TowerBrook

TowerBrook Capital Partners L.P. is an investment management firm with approximately $5 billion of capital under management. With offices in New York, London and San Francisco, the firm focuses on making investments in North America and European companies. TowerBrook primarily pursues control-oriented private equity investments in large and middle market companies, partnering with highly capable management teams, often in situations characterized by complexity. For more information, visit www.towerbrook.com.

About Sound Physicians

Sound Physicians is a leading hospitalist organization focused on driving improvements in quality, satisfaction and efficiency of inpatient health care delivery. By investing deeply in outstanding physicians, implementing clinical process excellence and developing proprietary workflow and informatics technology, Sound Physicians is defining hospital medicine. Sound Physicians seamlessly partners with healthcare providers to measurably enhance patient outcomes and strengthen the hospital’s financial performance. To learn more visit: www.soundphysicians.com.