Commitment to Delivery of Patient Care Excellence. We believe providing patient care excellence is critical to attracting patients, physicians, medical staff and employees to our facilities. In addition, providing high quality patient care is increasingly vital to achieving our operating and financial success, including receiving full reimbursement from governmental and commercial insurance payors. As a result, we have implemented several management and operating initiatives aimed at continuously monitoring and improving our quality of care. We believe several factors contribute to providing patient care excellence, including leadership and accountability at all levels of our organization, aligning ourselves with quality physicians and clinical staff, as well as providing a clinical environment that is satisfactory to our patients, physicians and employees. To support these initiatives, each of our hospitals has a Chief Quality Officer (CQO) who is responsible for implementing and monitoring our quality training and operating programs. In addition, we have Boards of Trustees and Local Physician Leadership Groups (LPLGs) at each of our facilities, a Physician Advisory Group (PAG), a National Physician Leadership Group (NPLG) and several on-line training tools, which are focused on delivering patient care excellence, clinical best practices and results in our hospitals. In January 2011, we added a Chief Medical Officer (CMO) to our senior management team to assume leadership responsibility for facilitating the work of our NPLG, ensuring that physician leaders across the Company are continuously involved in shaping our vision and future strategies. The CMO is also responsible for providing leadership for our affiliated hospitals quality and service excellence initiatives as well as for on-going communication with medical staff members. Furthermore, we strive continually to improve physician and employee satisfaction, which we believe is critical to delivering quality patient care. Our satisfaction review program is instrumental in identifying ways to improve quality of care in each of our facilities. Some of the results of our efforts include
EX-10.5 120 g27448exv10w5.htm EX-10.5 exv10w5
EXECUTION COPY
EXHIBIT 10.5
AMENDMENT NO. 1 TO STOCKHOLDERS AGREEMENT
THIS AMENDMENT NO. 1 TO STOCKHOLDERS AGREEMENT (this Amendment), dated as of February 29, 2008, is made by and among (i) Capella Holdings, Inc., a Delaware corporation (the Company), (ii) GTCR Fund VIII, L.P., a Delaware limited partnership (Fund VIII), GTCR Fund VIII/B, L.P., a Delaware limited partnership (Fund VIII/B) and GTCR Co-Invest II, L.P., a Delaware limited partnership (GTCR Co-Invest), (iii) each of the undersigned Executives, and (iv) each of the undersigned Other Stockholders. Certain capitalized terms not defined herein shall have the meanings given to such terms in the Stockholders Agreement (as defined below).
RECITALS
WHEREAS, the parties hereto entered into that certain Stockholders Agreement among the Company, Fund VIII, Fund VIII/B, GTCR Co-Invest and certain other stockholders of the Company identified therein, dated as of May 4, 2005 (the Stockholders Agreement);
WHEREAS, the parties hereto include the Company, the Investor Majority, the holders of a majority of the Common Stock held by the Stockholders, the holders of a majority of the Common Stock held by the Executives and the holders of a majority of the Common Stock held by the Other Stockholders; and
WHEREAS, the parties desire to waive certain provisions set forth in the Stockholders Agreement and amend certain terms set forth in the Stockholders Agreement pursuant to Section 16 of the Stockholders Agreement;
NOW, THEREFORE, in consideration of the foregoing recitals, which shall constitute a part of this Amendment, and the mutual promises contained in this Amendment, and intending to be legally bound thereby, the parties agree as follows pursuant to Section 16 of the Stockholders Agreement:
1. The Stockholders Agreement is hereby amended by removing all rights of the Stockholders under Section 14 of the Stockholders Agreement with respect to any issuances or sales of Capital Stock by the Company on or prior to the date hereof and any issuances or sales of Capital Stock by the Company pursuant to Amendment and Supplement No. 2 to the Purchase Agreement. Without limiting the foregoing, each of the undersigned Stockholders hereby waives, on behalf of all Stockholders, any and all of its rights of notice, purchase, first offer, reoffer or similar rights under Section 14 of the Stockholders Agreement in connection with any issuances or sales of Capital Stock by the Company on or prior to the date hereof and any issuances or sales of Capital Stock by the Company pursuant to Amendment and Supplement No. 2 to the Purchase Agreement.
2. All other sections, paragraphs, provisions, and clauses in the Stockholders Agreement not so modified remain in full force and effect as originally written.
3. This Amendment may be executed in one or more counterparts, each of which is an original, but all of which together constitute one and the same instrument.
4. All issues and questions concerning the construction, validity, interpretation and enforceability of this Amendment hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.
* * * * *
2
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.
CAPELLA HOLDINGS, INC. | ||||||
By: | /s/ Deniel S. Slipkovich | |||||
Name: | ||||||
Its: | Chief Executive Officer | |||||
GTCR FUND VIII, L.P. | ||||||
By: | GTCR Partners VIII, L.P. | |||||
Its: | General Partner | |||||
By: | GTCR Golder Rauner II, L.L.C. | |||||
Its: | General Partner | |||||
By: | /s/ Joseph P. Nolan | |||||
Name: | Joseph P. Nolan | |||||
Its: | ||||||
GTCR FUND VIII/B, L.P. | ||||||
By: | GTCR Partners VIII, L.P. | |||||
Its: | General Partner | |||||
By: | GTCR Golder Rauner II, L.L.C. | |||||
Its: | General Partner | |||||
By: | /s/ Joseph P. Nolan | |||||
Name: | Joseph P. Nolan | |||||
Its: | ||||||
GTCR CO-INVEST II, L.P. | ||||||
By: | GTCR Golder Rauner II, L.L.C. | |||||
Its: | General Partner | |||||
By: | /s/ Joseph P. Nolan | |||||
Name: | Joseph P. Nolan | |||||
Its: |
[Signature Page to Amendment No. 1 to Stockholders Agreement]
/s/ Daniel S. Slipkovich | ||||||
Daniel S. Slipkovich | ||||||
/s/ James Thomas Anderson | ||||||
James Thomas Anderson | ||||||
/s/ David Andrew Slusser | ||||||
David Andrew Slusser |
[Signature Page to Amendment No. 1 to Stockholders Agreement]