For More Information: Scott Clark Media Relations 254-724-9724 Email: sdclark@swmail.sw.org FOR IMMEDIATE RELEASE April 7, 2008

Scott & White manages Llano Memorial Healthcare System

LLANO, Texas - Scott & White began this month managing the Llano Memorial Healthcare System, which includes the 30-bed Llano Memorial Hospital and related facilities, under a recently signed management agreement. Kevin Leeper, LMHS chief executive officer, has joined the Scott & White staff and will continue as the administrator for the system.

"This area of the Texas Hill Country has seen significant growth the last several years, and the needs of the area residents have grown and changed along with it," said Leeper. "As early as 2001 the Llano County Hospital Authority Board was considering ways to meet the ever-increasing health care needs of our communities and enhancing the level of care available locally. The Scott & White management agreement will strengthen and ensure the stability and continuation of the Llano hospital and our clinic services."

LMHS will continue to be governed by the Llano County Hospital Authority Board.

Leeper said that with the formation of the Lake of the Hills Regional Medical Center organization almost three years ago, the health care system made the commitment to meet the increasing needs of the area. In February, Scott & White signed a management agreement to operate the LMHS for at least the next ten years. That signing culminated a year-long negotiating and planning process that will bring a new hospital and regional medical center to the Hill Country.

"Llano Memorial is a vital part of the Hill Country community," said Dr. Glen Couchman, chief medical officer and chief operating officer for Scott & White regional operations. "Scott & White is joining the dedicated group of primary care and specialty care physicians already in the area to provide for the needs of the residents in this region."

Added Leeper: "The resources of Scott & White will allow us to continue to provide excellent medical care as we move forward, and to provide additional specialty services."

Llano Memorial Hospital has been continuously operated since the 1950s, providing acute care and emergency medicine services for Llano County and Hill Country residents. The hospital was founded by local physicians and citizens to meet the needs of their communities. Over the past fifty years the hospital has expanded to keep up with the challenges of growth for the area. The need for rural health care was met in the 1990s when the hospital became the Llano Memorial Healthcare System with a chain of clinics in area communities.

In addition to the three hospitals owned and operated by Scott & White, the system also operates the 55-bed Coryell Memorial Hospital in Gatesville, Texas, under a management agreement.

In April 2007, Scott & White officials joined a regional cooperative of community entities in announcing their intention to jointly build, own and operate a new acute-care hospital with Lake of the Hills Regional Medical Center in the Marble Falls area. In February, a series of agreements was signed to bring the regional medical center into reality, including land and water arrangements.

The Lake of the Hills Regional Medical center will be built on 40 acres located at the intersection of U.S. 281 and State Highway 71, just south of Marble Falls. At the heart of the medical complex will be an 80 to 120-bed, full-service, acute-care hospital and medical office building, with an estimated cost of $140 million. Construction will begin once water lines are extended to the site.

More information about the Lake of the Hills Regional Medical Center project is available at www.lohrmc.org.

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