MINUTES OF THE MEETING OF THE BOARD OF COMMISSIONERS PUBLIC DISTRICT NO. 1 OF KING COUNTY, WASHINGTON

Held on January 12, 2011

Attendance:

Commissioner G. Sue Bowman, President; Commissioner-at-large Commissioner Aaron Heide, M.D., Commissioner-at-large Commissioner Anthony R. Hemstad, Commissioner, District No. 3 Commissioner Donald O. Jacobson, Secretary; Commissioner, District No. 1 Commissioner Carolyn V. Parnell, Vice-President; Commissioner, District No. 2 Richard D. Roodman, Administrator/CEO – Superintendent Paul S. Hayes, R.N., Executive Vice President Kathryn D. Beattie, M.D., Senior Vice President - Chief Medical Officer Larry Smith, Senior Vice President – Chief Financial Officer Scott Alleman, R.N., Senior Vice President – Care Services Paul Larson, Senior Vice President – Network Robert L. Thompson, M.D., Vice President – Relations David E. Smith – General Counsel Sandra Sward, Assistant to CEO and Board of Commissioners

Those present for a portion of the meeting:

Dr. Peter Balousek, Valley Neuroscience Institute Dr. Bill Barrett, Valley Orthopedic Surgeons George Beal, Perkins Coie Brad Bell, Bell Realty and President’s Advisory Council Dr. Terry Block, President, Southlake Clinic, Cardiologist Dr. Charles Butler, VMC Cascade Clinic Dr. Ron Cohen, VMC and Counseling Center Mayor Suzette Cooke, City of Kent Bernie Dochnahl, Harborview Board of Directors, President’s Advisory Council Barbara Drennen, Pediatric Interim Care Center Emanual Egvia, MultiCare Shannon Gilbert, MultiCare Don Hansen, Moss Adams Dale Hartman, President’s Advisory Council Peter Hasagawa, SEIU Local 1199NW John Jensen, President’s Advisory Council Lisa Jensen, Newcastle City Council, Harborview Board Member, President’s Advisory Council Gary Kohlwes, former VMC Commissioner Mayor Denis Law, City of Renton Dr. Wayne Lau, Chief of Staff, Valley Surgical Associates Josh and Staci Lyons, Covington Business Owners, President’s Advisory Council Tom Malmoe, President’s Advisory Council Robert McBeth, Parliamentarian Mike Miller, former VMC Commissioner Dr. Maury Montag, President, Associated Emergency 01/12/2011(2)

Dr. James Park, VMC Newcastle Primary Care Clinic Dr. Tony Pedroza, Medical Director, Valley Family Kalen Privatsky, Administrator, Valley Orthopedic Associates Elaine Purchase, Pediatric Interim Care Center Dean Radford, Renton Reporter Keith Renfrew, President’s Advisory Council Dr. Mark Simon, Obstetric Hospitalist Group Ron Stroben, President’s Advisory Council Jim Sullivan, President’s Advisory Council Bill Taylor, Renton Chamber of Commerce, President’s Advisory Council Dr. Jason Thompson, Valley Orthopedic Associates Dr. Marty Tullus, Valley Orthopedic Associates Kim Unti, President’s Advisory Council Dr. Yahua Yu, Valley Neuroscience Institute Dr. Joy Zhao, Valley Neuroscience Institute

Call to Order: This meeting of the Board of Commissioners of Public Hospital District No. 1 of King County was opened by President Bowman at 5:30 p.m. in the Board Room of Valley Medical Center.

Presentation: Recommendation for Affiliation – Rich Roodman, CEO

Mr. Roodman provided an overview of Health Care Reform, Accountable Care Organization structure and the timeline of events that Administration has pursued since January, 2010 reviewing outcomes related to federal changes surrounding the delivery of health care. He described the internal and external work that was undertaken to determine the best course of action for Valley Medical Center in the future.

Mr. Roodman recommended the Board consider management’s recommendation to pursue a Strategic Alliance with the University of Washington/UW Medicine. He indicated a non-binding Letter of Intent will be presented at the January 18, 2011 Board meeting, where both Mr. Roodman and Dr. Paul Ramsey, CEO of UW Medicine, will discuss this matter further.

Mr. Roodman also provided a vetting and due-diligence schedule that would begin on January 19 and end by May 31, 2011 in the event the Board decides that VMC should further investigate a Strategic Alliance with UW Medicine.

Public Comment: The following individuals spoke in favor of investigating the proposed Strategic Alliance:

Dr. Bill Barrett, Valley Orthopedic Associates Mayor Denis Law, (Renton) Dr. Maurice Montag, President, Associated Emergency Physicians Brad Bell, Bell Realty and President’s Advisory Council Dr. Terry Block, President, Southlake Clinic, Cardiologist Dr. Wayne Lau, Chief of Staff, General Surgeon 01/12/2011(3)

Dr. Martin Tullus, Valley Orthopedic Associates Mayor Suzette Cooke, (Kent) John Jensen, President’s Advisory Council, local Newscastle businessman Dr. Jamie Park, Medical Director, VMC Newcastle Clinic Dr. Tony Pedroza, Medical Director/Valley Residency Lisa Jensen, Newcastle City Council/Harborview Board Keith Renfrew, Resident of District, President’s Advisory Council Bernie Dochnahl, Harborview Board, past VMC Commissioner Josh Lyons, President’s Advisory Council, local businessman Bill Taylor, CEO,RentonChamberofCommerce,President’sAdvisoryCouncil Jim Sullivan, President’s Advisory Council, local businessman Gary Kohlwes, Previous Superintendent of Renton School District, past VMC Board member

Commissioner Comment:

Adjournment: There being no further business, motion was made and unanimously approved to adjourn this meeting at 7:30 p.m.