Lake of the Hills Regional Medical Center

Right care. Right place.
Scott & White’s commitment to providing care where it’s needed now extends to the Hill Country with plans for a full-service, acute care hospital to serve residents in and beyond Burnet, Blanco, Llano and San Saba counties. Patients who now travel outside of the area for some of their medical needs will be able to find the care they need closer to home. Construction will begin once water and utilities lines are extended to the site of the new medical campus. Groundbreaking is projected in 2009 or early 2010.

Timeline
While plans for the new medical facilities move forward, Scott & White will assume management of the Llano Memorial Health System, including the 30-bed Llano Memorial Hospital and a network of rural health clinics effective April 1, 2008. At that time, the 22 physicians affiliated with the Hoerster Clinic will formally become members of the Scott & White senior staff.

Location
The 40-acre site of the new medical campus is located south of Marble Falls at the intersection of U.S. 281 and State Highway 71 The area includes 18 acres donated by Sam Martin and Armand and Molly Biglari. Plans for the area include both the hospital and medical office buildings.

Technology
The Lake of the Hills Regional Medical Center will feature a fully digital health care environment, including wireless and high-speed Internet, email, and interactive cable television service.

Patient care
Care in a convenient and sophisticated setting will be provided with private, comfortable rooms and high-technology services.

Is this a primary care hospital that will send most of its patients to Temple?
No. This full-service hospital is designed to provide complete local healthcare. However, for patients with complex or rare medical needs, it may be in their best interest to receive the highly specialized care offered in Temple.

What will happen to the Llano Memorial Hospital?
Upon agreeing to build a new Hill Country hospital, Scott & White’s first commitment to the community was to ensure that the 30-bed community hospital in Llano would continue to provide general hospital services to the residents of Llano and surrounding communities. In an agreement with the Llano Memorial Health System, Scott & White will assume management of the hospital as well as the system’s rural health clinics, effective April 1, 2008. This agreement assures those services for at least 10 years.

What about Hoerster Clinic physicians – how will they be affected?
We have signed contracts with Dr. David Hoerster and his colleagues, which formally make the physicians members of the Scott & White staff. If you are currently a patient of one of these physicians, you should expect a seamless transition, as they become Scott & White physicians.

How many new jobs will this create and how can I apply for a position?
We anticipate hiring more than 300 employees. Although we are not currently accepting applications, we will recruit from the local area as we move closer to opening.

Who is the general contractor?
Our planning continues and we have not yet determined the general contractor.

Where can I get more information?
We are posting the latest information and developments about the new initiative at www.lohrmc.org

How did plans for a new hospital come together and who is building the hospital?
Community leaders recognized a need for more fullservice medical care in 2001 when the local population began booming. After several years of talks with numerous healthcare organizations, it was determined that Scott & White, a Temple-based healthcare system, will build and manage the facility.

What is the name of the new hospital?
Lake of the Hills Regional Medical Center is the initial working name for a new acute care hospital that will serve the Hill Country. As we move forward with plans, we anticipate that the name may change.

How large will the hospital be?
We are estimating the hospital will be between 70 to 120 beds. The final number will be determined after research and analysis in order to best fit the needs of a growing community.

When will the hospital open?
We have not yet set an opening date. Water and utility lines must be run to the site before construction can begin. Those lines should be in place by 2009 or 2010, and construction will begin immediately once that is complete. Our timeline for hospital construction is between 18-24 months, once the ground is broken.

Will the hospital be limited only to Scott & White physicians?
No. This hospital will use an open-staff model, allowing any credentialed physician to admit patients.

Must I be on the Scott & White Health Plan to use the new facilities?
No. Scott & White has opened its system to accept most major insurances.

Is there more than just a hospital?
Yes. Our plans also include a medical office building, which will likely be complete and open before the hospital. We expect a nine-month construction timeline for the building that will include clinic services for Scott & White and other community physicians.

How much will this cost and how will it be funded?
We are currently estimating this project at about $140 million. It will be funded through tax-exempt bonds and philanthropy.

Scott & White News Release

New agreements expand Scott & White’s presence in region
- Healthcare system and community leaders sign plans for growth -

MARBLE FALLS, Texas (February 8, 2008) – Scott & White officials joined local leaders today in signing final agreements that will bring a new regional medical center to the Hill Country.

“We are thrilled about completing these important and necessary steps for getting the hospital built,” said Wayne Anderson, president of Lake of the Hills Regional Medical Center, the non-profit organization formed to spearhead the creation of a new hospital in the area.

Signing the final documents marks the end of years of hard work by community leaders to bring a full-service regional hospital to the Hill Country.

“This new hospital is the culmination of efforts by the many community groups, government and business leaders who came together for one purpose: to expand residents’ access to high-quality health care,” said Dr. Alfred Knight, president and CEO of Scott & White. “We want to thank the Llano Memorial Healthcare System; Dr. David Hoerster and his colleagues; developers of Flatrock Springs including Molly and Armand Biglari and Sam Martin; the city of Marble Falls; the leadership of Llano and Burnet counties; and of course Wayne Anderson, and Mike Jenkins for tireless efforts in this endeavor.”

State and regional dignitaries witnessed the signing Friday at a ceremony at the Marble Falls Pavilion. Those documents included:

• Agreement with the physicians of the Hoerster Group to join Scott & White
  Scott & White and the 22 Hoerster group physicians have concluded agreements to merge with the Scott & White staff April 1.

• Management agreement between Scott & White and the Llano Memorial Healthcare System
  Also effective April 1, Scott & White will manage their system, including the 30-bed Llano Memorial Hospital and a network of rural health clinics. Llano Memorial Hospital CEO, Kevin Leeper, also becomes a member of the Scott & White staff.

• Memorandum of Understanding between Scott & White and the developers of Flatrock Springs
  Scott & White will purchase an additional 22-acres at the new site, which added to the 18 acres already donated will bring the new medical center campus to a total of 40 acres to accommodate future growth.

• Flatrock Springs water and wastewater services and development agreement
  This agreement between the city of Marble Falls and the owners of Flatrock Springs will bring water services to the site. In welcoming the Hoerster physicians to Scott & White, Knight noted the high quality of care the Hoerster doctors have provided to the Hill Country and the Llano Memorial Healthcare System, with which the Hoerster physicians have been affiliated for decades. “Our organization was founded and continues to be led by physicians, and we are proud to include Dr. David Hoerster and his colleagues as members of our staff,” said Knight.

Speaking on behalf of the physicians in the group, Dr. Hoerster said Scott & White’s reputation made the transition attractive. “While Scott & White was built around doctors, the interests of its patients have always come first,” Hoerster said. “That is the kind of organization that we gladly and unanimously wanted to join.”

Various studies under way will help determine the completed size of the hospital. Current estimates call for a facility between 70 and 120 beds at a cost of more than $1 million per bed. The final cost for the new hospital and medical office building is expected to top $140 million. In addition, the new facility could add up to 400 jobs to the local economy.

“This expansion demonstrates our substantial commitment to the Hill Country, and allows us to provide the right care in the right place,” said Knight.

Knight said construction will begin one month after water services reach the building site, which is projected for next year. Construction for a medical office building is expected to take about nine months, with the hospital construction phase projected at between 18 to 24 months.

Last April, local leaders announced Scott & White’s affiliation with the project and its plans to build a full-service, acute-care hospital and medical office building south of Marble Falls at intersection of US 281 and SH 71.

Marble Falls Mayor Raymond Whitman echoed the support for the new hospital initiative. “The city is glad to lend its cooperation and support to this project because it is vital that our citizens have a major hospital within minutes of their homes and businesses instead of hours away,” Whitman said. “It is important to the health of our citizens and the long-term health of our region’s economy.”

Mike Jenkins, president of the Llano County Hospital Authority, called the management agreement with Scott & White the best thing that could happen to the Llano Memorial Hospital and Llano residents.

“Not only do we have a guarantee that the Llano hospital will continue to serve our community for at least the next 10 years, but we will also be part of a healthcare system run by one of the most respected names in the country,” Jenkins said. Under the agreement, Scott & White will manage the hospital and eventually merge operations. “Scott & White could renovate the current 30-bed hospital or even replace it with a new hospital in Llano,” he said.

Also introduced Friday were the 18 members of a development steering committee, co-chaired by community leaders Jim Jones and Bob Sewell to raise private donations for the non-profit Lake of the Hills Regional Medical Center. Funds raised in the community will stay in the area to help support and enhance services at the new regional medical center.

About Scott & White:

Scott & White is a three-hospital health care system established in 1897. Recognized among the nation’s 100 Top Hospitals, Scott & White is the principal teaching facility affiliated with the Texas A&M Health Science Center College of Medicine. Along with its flagship hospital and clinic facility in Temple, Texas, Scott & White also includes its Continuing Care Hospital on Temple’s West Campus and the 72-bed acute care hospital at the University Medical Campus in Round Rock. With more than 600 physicians and scientists, Scott & White has become one of the nation’s largest multi-specialty group practice systems. The nationally recognized Scott & White Health Plan is another component of the system, providing health care insurance to more than 200,000 members.

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