HOUSTON (May 10, 2017)

Emerus Holdings Inc., the nation's first and largest operator of micro-hospitals, entered into an agreement to establish a new joint venture partnership today with Memorial Hermann Health System, the largest not-for-profit health system in Southeast Texas. Through this partnership, the Emerus facilities in Tomball and Sugar Land will be contributed into the new venture and operate under the Memorial Hermann name. As part of the transaction, the partnership will also have the option to open additional healthcare facilities in the future, significantly improving access to high quality care in communities throughout the Greater Houston area. The transaction, which is subject to closing conditions, is expected to close in the summer of 2017.

"By partnering with such a trusted health system, our patients know they will receive premier medical care from affiliated doctors and staff who are all held to Memorial Hermann's high standards," said Craig Goguen, CEO of Emerus. "We could not be more pleased, as this agreement continues the momentum we've established as an expansion partner of choice to leading health systems across the nation."

"Emerus and Memorial Hermann share a common goal to provide innovative, high quality, patient-centered care to those who need it most," said David Bradshaw, Executive Vice President and Chief Strategy Officer at Memorial Hermann. "We're excited to join Emerus in this new care delivery venture that will help us continue to improve our community's access to that care by offering convenient locations throughout the city that are easy to get to, no matter where you live."

Emerus opened its first micro-hospital in Tomball 11 years ago, followed shortly thereafter by the Sugar Land location. Until now, the two Houston locations were the only Emerus facilities not affiliated with a major health system. The Emerus Community Hospital, located at 24429 Tomball Parkway in Tomball, will be renamed Memorial Hermann Tomball Hospital; and the Emerus 24HR Emergency Hospital, located at 16000 Southwest Freeway, Suite 100, in Sugar Land, will be renamed Memorial Hermann First Colony Hospital.

Uniquely different from urgent care clinics, Emerus facilities provide emergency centers with additional services such as primary care, diagnostic imaging, and lab tests – in a smaller, more efficient footprint, with shorter waiting times and convenient parking, closer to patients' neighborhoods and homes. These new facilities will expand the already well-established Memorial Hermann emergency care network to 19 locations including acute care hospitals, Convenient Care Centers and a free-standing emergency room in The Woodlands. Once integrated, these hospitals will feature:

Access to the broader Memorial Hermann network — allowing for care coordination, consultation and seamless transition across the care continuum;Inpatient bed capacity — allowing patients to stay closer to home when lower level admissions/recoveries are needed;Primary care physicians, diagnostic imaging and laboratory services on site; andAccess to care 24 hours a day, seven days a week.Each facility will be staffed by board-certified physicians, experienced nurses and other clinical specialists dedicated to providing the same level of compassionate, patient-centered care found throughout Memorial Hermann Health System.