Major Health Center Planned for Cleveland, Ohio, Area

CLEVELAND - University Hospitals today unveiled another key component of its Vision 2010 strategy - the building of a state- of-the-art suburban Center for Health that includes a 200-bed hospital, an ambulatory surgery center, physician offices, and community outreach and education capabilities.

University Hospitals has entered into an agreement with Chagrin Highlands Ltd., a partnership of The Richard E. Jacobs Group, Inc. and STI Properties, Inc., to purchase a 53-acre site at the Chagrin Highlands corporate campus. The parcel is located along Interstate 271 at the Harvard Road exit.

"The region along I-271, I-480 and Route 422 has seen considerable growth over the past decade, and there is a definite need for conveniently located, state-of-the-art healthcare services for our existing patients and for everyone in the surrounding communities. Our new location is ideally suited to develop a world-class Center for Health," said Thomas F. Zenty III, President and Chief Executive Officer of University Hospitals.

"By incorporating the latest design concepts in patient-centered healthcare facilities and the newest technology, we will offer our patients a unique experience and the highest quality of care which they have come to expect and receive from University Hospitals," added Achilles A. Demetriou, MD, PhD, Executive Vice President and Chief Operating Officer of University Hospitals.

In January, University Hospitals announced the largest expansion in its history, focusing primarily on major projects on the University Hospitals of Cleveland campus - including a new cancer hospital and a contemporary Emergency Department, as well as renovation and expansion of Rainbow Babies & Children's Hospital's neonatal intensive care unit. The suburban Center for Health adds a new dimension to University Hospitals' expansion.

This new Center for Health will complement outpatient services currently offered at the existing UHHS Chagrin Highlands Medical Center, which is across Interstate 271 from the proposed Center for Health. Additionally, University Hospitals of Cleveland - including Rainbow Babies & Children's Hospital, the No. 1 children's hospital in the Midwest, and MacDonald Women's Hospital - will remain the tertiary and quaternary medical hub for University Hospitals.

"Our announcement in January emphasized those projects at University Hospitals of Cleveland that build on our reputation as a regional and national resource for tertiary and quaternary care. Our new Center for Health focuses on convenient primary and secondary care at a world-class hospital in our suburban communities," said Fred C. Rothstein, MD, President and CEO of University Hospitals of Cleveland. "Together, these projects demonstrate our strategy to provide our patients the right care at the right location to meet their individual needs."

In addition to a new 200-bed hospital for inpatient care, the Center will feature an array of outpatient services ranging from high-tech minimally invasive surgery and endoscopic procedures to leading-edge diagnostics and genetic counseling. Physician offices and facilities for community outreach and education programs will round out the plans.

"This is a major boost for the development of Chagrin Highlands," said Douglas L. Miller, the Jacobs Group's vice president of office operations and leasing. "A medical complex at this location has the potential to attract many new, highly desirable activities to our campus. Moreover, this strongly affirms both the vision and the long term potential that both we and many local civic leaders saw and believed in from the very beginning of Chagrin Highlands' existence."

The Center for Health also will enhance University Hospitals' eastside hospital presence, which includes Bedford Medical Center, Richmond Heights Hospital, Geauga Regional Hospital, Memorial Hospital of Geneva and Brown Memorial in Conneaut.

"Our existing hospitals continue to meet the needs of their communities, and, therefore, they remain an important part of our overall strategy. In fact, we have invested in significant projects at Bedford, Richmond Heights and Geauga as part of our Vision 2010 strategy," said Dr. Demetriou. "The addition of our new Center adds to our ability to serve all the patients in that region."

Pending local government approvals, construction will begin in 2007. The medical office building is scheduled to open in 2008, the ambulatory surgery center in 2009 and the hospital in 2010.

University Hospitals Health System is celebrating 140 years of caring for Cleveland. Its 947-bed, tertiary medical center, University Hospitals of Cleveland (UHC), is the primary affiliate of Case Western Reserve University (Case). Together, they form the largest center for biomedical research in the State of Ohio. The System provides the major clinical base for translational researchers at the Case Research Institute, a partnership between UHC and CWRU School of Medicine, as well as for clinical trials involving the most advanced treatments. Included in UHC are Rainbow Babies & Children's Hospital, the number one children's hospital in the Midwest; Ireland Cancer Center, designated by the National Cancer Institute as a Comprehensive Cancer Center (the nation's highest designation); and MacDonald Women's Hospital, Ohio's only hospital for women.

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Chagrin Highlands Ltd., is a partnership formed in the mid-1990's between The Richard E. Jacobs Group, Inc. and STI Properties, Inc., a former affiliate of Figgie International and now Scott Technologies, Inc. As the managing partner, the Jacobs Group has long been one of America's premier owners and developers of commercial real estate. Founded in 1955, the privately-held company remains today as a major national developer of office buildings, retail shopping centers, hotels, and mixed-use projects. Headed by its co- founder and Chairman, Richard E. Jacobs, the firm is headquartered in Westlake, Ohio. In addition to Chagrin Highlands, the Jacobs Group's local properties also include Key Center in downtown Cleveland, the redevelopment of Westgate Mall in Fairview Park, and various other developments in Northeast Ohio and in several other states.