For more information, contact: Judy Curtis, Scott & White Media and Public Relations 512-466-1929 or 254-724-4097 jcurtis@swmail.sw.org John Bender, Lake of the Hills Regional Medical Center 512-626-5949 FOR IMMEDIATE RELEASE February 8, 2008

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.

Note to editors:

Artist's rendering and press kit material available for download at www.lohrmc.org

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