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December 15, 2014

Raul Alvarez
District Director
Office of Assembly Member Anthony Rendon, 63rd District
12132 South Garfield Avenue
South Gate, CA 90280
Dear Mr. Alvarez:
Thank you for reaching out to me regarding our proposal to revitalize the Daughters of Charity Health System
(DCHS). It is disappointing to read the inaccurate statements in the fact sheet you provided about our
proposal.
Id like to address the inaccuracies point by point:
1)

The document says we proposed a management contract, not an acquisition. This is not so we proposed
the immediate disaffiliation of DCHS from the Daughters of Charity, and we agreed to recapitalize the
system with an immediate injection of new cash and management resources. The value of our offer was
assessed by the Daughters own advisors at over $800 million in aggregate, as is set forth clearly in the
DCHSs own submissions to the California Attorney General (see, for instance, Exhibit B2 of that
submission, which shows the Estimated Distributable Value of our offer as $803 million.)

2)

We communicated to DCHS and their representatives that we were prepared to discuss offering a deposit.
DCHS never made a substantive response to our offer.

3)

Our offer required no ongoing financial or other commitment of any kind on the part of the Daughters.

4)

Our highly seasoned management team has decades of experience operating safety net hospitals,
including in California, with excellent results.

5)

Our proposal was fully financed and preserved 100 percent of the pensions for past and current
employees.

Our proposal was focused on creating a sustainable organization as DCHS hospitals provide valuable services
to many underserved communities. In addition, we committed to spending $300 million in new capital
expenditures over the next five years and asked of no further financial or operational support from DCHS.
Blue Wolf has extensive proven experience in healthcare which is the reason so many community stakeholders,
including public officials, health care providers, and labor organizations, have been supportive of our team.
Our healthcare team is led by hospital executives with an unblemished and unchallenged record of turning
around safety net hospitals and providing quality care in underserved communities. In the case of DCHS and
its complexities, we put together a team of nearly 100 individuals with multi-disciplinary experience to support
our leadership team.
I greatly appreciate you reaching out to me to ask about Blue Wolf's proposal. I would be happy to discuss this
in greater detail with you and/or Assembly Member Rendon and answer any additional questions you or he
may have. I have also provided the following links to our website that provide additional information about
our experience and background.
Thank you again.

Adam Blumenthal

WEBSITE LINKS:
About Blue Wolf Health
http://www.blue-wolf.com/health-care-investments/blue-wolf-health.php
About Blue Wolf Team
http://www.blue-wolf.com/health-care-investments/our-healthcare-team.php
Statement Regarding DCHS
http://www.blue-wolf.com/press-releases/2014/29-10-statement-regarding-the-daughters-of-charityhealth-system.php

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