King’s Daughters Hospital and Scott & White Healthcare today announced their commitment to create a regional free-standing children’s hospital on the campus of King’s Daughters Hospital. It will become the only hospital of its kind between Austin and Dallas.

Earlier today, the King’s Daughters Board of Directors approved the proposal by Scott & White to merge with the facility and convert it into a regional children’s hospital. The Board’s vote followed a lengthy search for a healthcare organization to acquire the financially struggling hospital.

The transfer of ownership to Scott & White will be effective tomorrow. Scott & White will continue to operate King’s Daughters as an acute-care hospital serving adults and their families until the conversion to the Children’s Hospital is complete, a process Scott & White representatives say will take many months. During this time, the transaction will undergo a review by the Federal Trade Commission (FTC) and other regulatory agencies. This type of review is customary for a transaction of this type.

The free-standing children’s hospital will continue to bear the name King’s Daughters after the transition. It will have 60 to 80 beds and four operating suites to support the delivery of pediatric services including surgery, orthopedics and a dozen more sub-specialties. There will also be a dedicated pediatric emergency department and intensive care unit. Young patients will also have access to child life services to respond to the unique needs of children facing surgery or those requiring physical or respiratory therapy. Scott & White and Cook Children’s Health Care are exploring a partnership in which Cook Children’s would provide management of both inpatient and outpatient services at the new Children’s Hospital

“The merger of Scott & White and King’s Daughters Hospital will continue serving this community, with a focus on our children,” said Dr. Alfred B. Knight, president and CEO of Scott & White. “The addition of Cook Children’s to this effort means there will be an unprecedented emphasis on children’s health in our area.”

“Children are among the fastest growing segments of the population in Central Texas,” said Dr. Robert W. Pryor, chief medical officer and chief operating officer for Scott & White and a pediatric critical care specialist. “The new free-standing Children’s Hospital will provide enhanced coordination of care for pediatric patients in a child-friendly environment.”

The decision by the King’s Daughters board reflects its excitement for Scott & White’s vision for the hospital as well as Scott & White’s responsiveness in helping King’s Daughters quickly find a solution for the troubled facility, said board chairman John Cunningham.

“King’s Daughters has served this community well for more than 100 years, and we are proud to have found this opportunity that will allow our hospital to continue its service for decades to come,” Cunningham said.

“The Board greatly appreciates the dedicated work of our nurses and staff members over the last year. They have continued to provide our patients extraordinary care in an increasingly challenging atmosphere.”

Although Scott & White will formally assume operations of King’s Daughters on April 1, the day-to-day services at the facility will remain unchanged for now as Scott & White representatives work to learn more about the hospital’s operations. Gary Looper will remain as interim CEO and provide guidance over the next year as a conversion plan is developed.

Over time, Scott & White’s Children’s Hospital, now housed at Scott & White Memorial Hospital, will relocate to the King’s Daughters facility. The timetable for that transition is still to be determined.

The new Children’s Hospital also will help Scott & White, the Texas A&M Health Science Center College of Medicine and Cook Children’s train the next generation of pediatricians.

“Studies show that the chances of retaining residents as practicing physicians in our region are good when these students perform their residencies at a hospital here in the Temple area,” said Dr. Donald E. Wesson, chief academic officer at Scott & White and vice dean, Texas A&M Health Science Center College of Medicine. “In addition, a Children’s Hospital can foster the research and discoveries leading to new treatments for childhood diseases.”

The concept for a free-standing children’s hospital was advanced after King’s Daughters Hospital entered into a nondisclosure agreement with Scott & White on February 16 to explore a potential partnership. That step was taken in response to a combination of economic factors confronting King’s Daughters Hospital.

For more information, contact:

Robin Bodkin

254-771-8699 or 254-771-8600

Scott Clark
Scott & White Healthcare

Manager of Media and Public Relations

254-724-9724

FOR IMMEDIATE RELEASE

March 31, 2009