Press Release

Springdale, AR
August 27, 1999

Contact: Hugh Means - 501.927.0970
Suzanne Ward - 501.927.0970

Bob Shaw, chairman of the board of directors of the CommunityCare Foundation, Inc., announced that a "final closing statement" was signed today between Northwest Health System and Quorum Health Resources of Brentwood, Tennessee. Shaw said, "The sale of Northwest was essentially completed on November 30, 1998, but we have been working until this week on some adjustments of the closing statement." The majority of the funds from the sale were received on December 1 of last year. This week, additional resources were exchanged to settle certain accounts which could only be estimated at the initial closing.

When a not-for-profit organization is sold to a for-profit company, as in this case, the proceeds of the sale must continue to be used in the nonprofit sector. The CommunityCare Foundation, Inc. was established at the time of the sale and will use the proceeds to benefit northwest Arkansas.

CommunityCare Foundation, Inc. expects to function as a community foundation, making grants to other nonprofit organizations that are working to build healthy communities in this area. Depending upon earnings from the invested assets, $5 – 7 Million could be given to nonprofit groups in northwest Arkansas each year. As the assets grow, the annual funding will grow as well.

CommunityCare Foundation, Inc. will be the second largest funder in the state of Arkansas, second only to the Walton Family Foundation in Bentonville, and the largest funder working exclusively in northwest Arkansas. According to Hugh Means, president & CEO of the CommunityCare Foundation, Inc., "The funds from the sale have been invested by the Foundation Trustees until the Foundation has completed a strategic planning process and is prepared to publish guidelines and accept grant applications."

The planning process will take place over the next several months, and will be led by board members and executive director, Suzanne Ward. Community meetings where nonprofit service organizations and members of the public can discuss the needs of the area are planned for September and October. According to Ward, "We want to involve as many people as possible and get their advice on how to improve the quality of life in our communities."

Bob Shaw indicated, "There are a lot of questions that potential grant recipients have, such as:

• What areas will we fund (for example, health, human services, education, arts and culture, environment)?
• What types of funds will be available (for example, general support, capital funds, special projects)?
• How much money can an organization apply for?
• What is the specific geographic area in northwest Arkansas?
• What will be the process for applying for a grant?
• Who will review grant requests?
• How often will funds be distributed?

"We hope to answer all of these questions, finish the strategic plan, and publish our guidelines by the end of 1999 and begin accepting grant applications early in 2000."

For additional information about the Foundation, please call Suzanne Ward at (501) 927-0970.

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