Northstar Healthcare Announces Complete Resolution to Dispute with Major
Payor

Palladium-Houston Facility Not Subject to Recovery Claims

TORONTO and HOUSTON , Nov. 4 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced that its Palladium-Houston facility has reached a complete resolution to its dispute with one of its largest payors, a major private health insurance provider.

As a critical component of the resolution, the parties have signed a Settlement Agreement under which Palladium-Houston and the payor have agreed to release each other from any past or present claims related to the dispute.

"This announcement is the culmination of extended discussions covering a number of issues and represents a complete resolution to all elements of the dispute," said Steve Linehan , CEO of Northstar. "In particular, I'm pleased to report that Palladium-Houston has been released from any potential claims - past or present - related to the disputed payments. This is great news for the company and our shareholders."

In addition to the Settlement Agreement, Northstar entered into a Facility Participation Agreement with the payor. Under this in-network agreement, surgical procedures performed at Palladium-Houston will be reimbursed by the payor at agreed-upon rates. The contract is effective December 1, 2009 for an initial period of three years, extendible annually thereafter.

"This strengthened relationship positions us favorably for future projects with this payor as well as for similar agreements with other large payors, where appropriate" added Mr. Linehan .

In finalizing terms of the contract, Palladium-Houston and the payor have agreed that the payor will adjudicate previously billed claims, which have remained unpaid, at the agreed in-network rates, excluding claims billed for procedures performed by Exclusive Use (EU) physicians.

    
    About Northstar Healthcare Inc.
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Northstar owns and/or manages ambulatory surgery centers in the United States , focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites. In addition, Northstar manages an ambulatory surgery centre in Dallas .

Northstar was founded and sponsored by Donald Kramer , M.D. and Stewart A. Feldman. Mr. Feldman also served as the co-principal and Chairman and Chief Executive Officer of Healthcare Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its President.

    
    Forward-looking statements
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This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com or at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.

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For further information: Philip Koven, Tel: [phone] Ext. 235, E-mail: [email protected]