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Trillium Hospital to Discontinue Services

January 29, 2002

Albion, MI - Today, the Board of Directors of Trillium Hospital (Albion Health Services) announced that Trillium Hospital will close. While the exact date has not been determined, the hospital is expected to close within two weeks. Foote Health System will continue to provide assistance to Trillium through management oversite and financial support as it winds down its operations. The closure will impact nearly 200 staff.

Since 1993, Trillium Hospital has operated in the red, losing more than $6.5 million over the past five years. Trillium Hospital pursued many affiliations with larger hospitals to improve operational efficiencies. In February 2001, Trillium Hospital and Foote Health System entered into a 12-month Management Agreement to identify areas of mutual benefit to both organizations by collectively maximizing efficiencies and improving the quality and cost-effectiveness of healthcare services in the region. However, the reimbursement climate and continuing low patient volumes experienced at Trillium make it unlikely that these losses could be eliminated or reduced in the foreseeable future.

"Over the past 11 months, the Boards of Foote and Trillium and its administrative teams have conducted extensive assessment of local needs and explored various alternatives for the provision of health services to the greater Albion community. The Trillium Board has concluded, and the Foote Board agrees, that it is no longer financially feasible to operate Trillium Hospital,," said Victoria Webster, Terillium Hospital Interim CEO.

Discontinued services will include all inpatient care areas- medical surgical, intensive care, and acute rehabilitation. Other affected services include its emergency services, surgery services, specialty clinics, outpatient rehabilitation, radiology services, and durable medical equipment.

Trillium's closure may also have some affect on the physician practices provided by Trillium Family Medicine, Trillium Internal Medicine, and Keefer Family Medicine all of Albion; Parma Family Medicine, Parma; and Springport Family Medicine, Springport. Foote Hospital is current in the process of attempting to transition the operations of these practices so that they continue to provide local routine healthcare services. Referral relationships to specialty services and inpatient care at nearby Foote Hospital will remain intact.

Foote is exploring the best way to provide services after physician office hours, and one option they are considering is an urgent care center to treat non-emergency illnesses and injuries requiring immediate attention. This center could possibly be located in the new Ralph and Mary Cram addition, or at another site.

"The Albion community has been an important part of Foote Health System's service area. Our studies indicate that access to primary and urgent care services are critical concerns to the Albion community. It is our goal to explore opportunities that will address these needs," said Georgia Fojtasek, President, Foote Hospital.

"Foote Health System is one of the region's leading providers of healthcare and its administrators are dedicated to providing local access to health services that will address the community's needs and support its mission of improving the health status of Jackson and its surrounding communities. This was a tough bet well thought out decision, and I am confident that Foote will continue to ensure convenient and compassionate care with the provision of clinical excellence," said Bill Stoffer, Trillium Hospital Chairman. "We are hopeful that the community understands and will continue to support our decision." He added.

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