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

November 9, 2007

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’m excited to tell you that yesterday, the Whatcom Regional Board and PeaceHealth System Board agreed that the acquisition of Madrona Medical Group (MMG) would be aligned with our Mission, Vision and Values. The Boards came to this conclusion through an in-depth process called “Ethical Discernment.” This decision is a major milestone on our path toward closer integration of the two groups.

As you know, the primary reason for aligning with MMG is our shared view that we can together provide a better patient experience and better resource utilization for our community. With that in mind, we needed to conduct a disciplined review called Ethical Discernment. Ethical Discernment is a process used by PeaceHealth for every proposed major new service or change in service, to ensure that the proposal would be in alignment with our Mission, Vision and Values. Yesterday, we looked at extensive information that has been gathered about MMG, as well as input and concerns from community representatives, physicians and employees. We used listening, reflection, prayer and discussion – keeping the Mission, Vision and Values as our guiding light and foundation for our decision.

Overall, we agreed that an affiliation with MMG would contribute significantly to achieving Peace Health’s vision. By expanding the best practices of both organizations we can accomplish more together than is possible for either organization to do alone. The boards asked for additional information and will make their final decision in January based on “the greater good” as the ultimate discernment value.

What’s next? The discovery phase is continuing, in which PeaceHealth Whatcom Region and MMG exchange information. The negotiating teams are meeting regularly. Although there is still a long way to go, we expect to have final details for recommendation to both boards by late January.

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