Children's Hospitals and Clinics of Minnesota, Fairview Health Services and Allina Begin Joint Planning toward a New Independent, World-Class Children's Hospital.

MINNEAPOLIS -- Freestanding hospital would be a pediatric resource for Minnesota and surrounding region

Board 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 asked their organizations' CEOs to begin working toward the development of a new world-class children's hospital that would be affiliated with the University of Minnesota. CEOs Alan Goldbloom, M.D. of Children's, David Page of Fairview, and Richard Pettingill of Allina will begin in-depth joint planning immediately.

Discussions for the new hospital will focus on an independently operated model, consolidating inpatient pediatric care and thereby reducing redundancies in specialty pediatric services. The intent is to preserve the essential integrity of each hospital's birth centers, including those at Allina's Abbott Northwestern and United hospitals as well as at the University of Minnesota Medical Center, Fairview. The freestanding hospital would most likely be built near the Riverside Campus of the University of Minnesota Medical Center, Fairview to take full advantage of the pediatric research, education and clinical care undertaken at the University.

During joint planning, members of all three organizations will consult with others in the health care community and will assess operating models, physician integration, impact on employees and local communities, and a range of financial issues. "This is a complex undertaking, but we believe that the benefits of building a consolidated hospital in terms of quality care, access, and efficient stewardship of our resources far outweigh any singular interest," said Jim Ryan, CEO of Ryan Companies and chair of the board of Children's Hospitals and Clinics of Minnesota.

Pediatric hospital care in the Twin Cities is more fragmented than in those metro areas that are known for their world-class independent children's hospitals such as Boston, Cincinnati, Philadelphia and Houston. "Although each of our organizations provides excellent care, we are aware of some service duplication, diffused expertise and resource limitations that ultimately will make it difficult to sustain the highest quality of care in the future," said Jon Campbell, CEO-Minnesota and executive vice president at Wells Fargo Bank and chair of Fairview's board. "This facility will bring our most complex patients together with the University's ground-breaking research, which will bring new knowledge to patient care as quickly as possible."

The three health care organizations have discussed in the past the possibility of an independent hospital that would build on the investments each has made in existing children's facilities and in the neighborhoods where they are located. The leaders believe that the time is now right for action, due to demand for new facilities, the growing cost of state-of-the-art medical technologies, and the challenges of obtaining philanthropic support for multiple institutions. Currently, the University of Minnesota Children's Hospital, Fairview is planning a facility to replace its existing "hospital within a hospital" at the medical center on campus. Children's Hospitals and Clinics of Minnesota also is planning expansions at both its Minneapolis and St. Paul sites. "We have watched the race for capital in health care," Ryan said. "When it comes to Minnesota's children, we believe there's a better way." An independent facility has the potential to be world class and to save money.

Task forces will begin joint planning immediately, said Edson Spencer, Jr., managing partner, Affinity Capital Management and Allina board member. "We are committed to finding health care solutions that are in the community's interest. We are optimistic that together we can successfully address all issues involved in creating Minnesota's first independent, consolidated and truly world-class children's hospital."