Update on Potential Affiliation of Madrona Medical Group with St. Joseph Hospital
    

March 5, 2008

TO: PeaceHealth Whatcom Region Employees, Madrona Medical Group Employees, Physicians, Community Members and All Interested Parties

FROM: Nancy Steiger, Regional CEO and Chief Mission Officer
PeaceHealth Whatcom Region
 

I am pleased to share that this week the PeaceHealth Whatcom Region Board approved the business plan to acquire Madrona Medical Group. Several steps remain: Approval by the PeaceHealth Board, the Madrona Medical Group Board and Madrona Medical Group shareholders. If all parties approve, the purchase could take effect by July 1, 2008.

With an integrated, larger medical group, we would have the opportunity to expand on PeaceHealth’s mission, vision and values and be one step closer to achieving the Vision 2012 strategy of clinician partnership and planned care.

If the purchase should go through, the current St. Joseph Medical Group and Madrona Medical Group would work together to create a larger clinic organization. This would incorporate and build upon the strengths of both existing groups and improve the patient experience through seamless care for outpatient as well as inpatient services.

I continue to be very excited about this opportunity to enhance our promise of providing safe, evidence-based, compassionate care for the communities we serve.