Consolidated children's hospital not feasible

MINNEAPOLIS (Sept. 29, 2006) – Leaders of Children’s Hospitals and Clinics of Minnesota, Fairview Health Services and its University of Minnesota Children’s Hospital, and Allina Hospitals & Clinics said today that they have been unable to come to an agreement on building a consolidated children’s hospital that is workable and financially viable for each of the individual organizations. The decision resulted from four months of comprehensive joint planning on complex issues including financial viability, clinical integration and academic affiliation that involved the University of Minnesota.

“We knew when this process began that it would be an extremely complex undertaking,” said Alan Goldbloom, M.D., president and CEO of Children’s Hospitals and Clinics of Minnesota. “The discussions were open and constructive, but the outcome was disappointing for all. Nevertheless, we remain committed to building on our strengths and ensuring that children in this region receive care that is second to none."

During the evaluation process, joint work groups studied all aspects of building a new hospital. Each organization’s volunteer board chairs and leadership teams were actively involved throughout the planning process. They sought out subject matter experts inside and outside their organizations, and listened to leaders of some of the country’s best-known children’s hospitals, as well as community members.
It became apparent that the parties would be unable to pursue an independent, consolidated children’s hospital without putting at risk the financial stability of some of the existing organizations and impeding their collective ability to continue delivering outstanding healthcare to the community.

The group found no existing model that reflects this community’s unique position of supporting several existing high-quality facilities that serve our children. The Twin Cities already has exceptional, nationally recognized children’s hospitals at Children’s Hospitals and Clinics of Minnesota in both Minneapolis and St. Paul; and thriving pediatric care, research and education at the University of Minnesota Children’s Hospital, Fairview.

“Through this planning process we developed a new appreciation for what already exists,” said Dick Pettingill, president and CEO, Allina Hospitals & Clinics. “As stewards of the community’s healthcare resources for patients of all ages, we agree that going forward with a financially unsustainable plan is not in the community’s interests.”

Added Jon Campbell, CEO-Minnesota and executive vice president at Wells Fargo Bank and chair of Fairview’s board, “This community currently offers exceptional children’s health care that I hope will become even stronger through what we have learned from this effort.”

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