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					Dear colleagues,

I wanted to ensure all of you received a copy of the memo below that outlines our
collective decision to pause all activity on the Ambulatory Care Clinic at this time.
Based on the current state of the economy, we all agree that it is a sound decision to
pull back from incurring further expense in time and energy – until we have a better
understanding of the financial environment.

As always, I am available for questions and comments.

Frank B. Cerra, M.D.
Senior Vice President for Health Sciences
McKnight Presidential Leadership Chair

To: Leaders, Faculty and Boards at University of Minnesota Medical School, Fairview
and University of Minnesota Physicians

From: Frank B. Cerra, M.D., Senior Vice President for Health Sciences, U of M
Mark A. Eustis, Fairview President and CEO
Roby C. Thompson, M.D., University of Minnesota Physicians CEO

Date: Dec. 15, 2008

RE: Ambulatory care at University of Minnesota Medical Center, Fairview

Under the current economic conditions, we believe it is prudent to defer further
planning and construction of the new Ambulatory Care Center on the University
Campus until such time access to capital becomes more available. As a result of a
rapidly weakening economy, restricted access to capital, investment losses and the
significant increase in the cost of debt and related covenants, Fairview and the
University have continued to assess our collective capacity to fund both current and
future capital projects.

We know there are a series of interdependent ambulatory care needs that must be
met sooner rather than later, including the construction of the new children's
hospital on the Riverside Campus and the corresponding relocation of adult services
to the University Campus. We have directed our leadership teams to evaluate
alternative short term plans and actions to accommodate this change in our previous
plan understanding that many of these moves were dependent upon the
construction of new ambulatory care capacity.

This decision does not change our joint commitment to build the Ambulatory Care
Center on the University Campus, but rather the timing of the project. We will re-
assess the capital markets, our collective capital capacity and operational / financial
capability every six months and will keep you informed of our progress on this
important project. We remain hopeful that we will re-engage project planning
during the fall of 2009. We look forward to your engagement in developing
alternative plans to meet our ambulatory care needs on the Riverside and University
campuses. We are confident in our collective ability to develop effective and efficient
alternatives that support our commitment to exceptional care.

Thank you for your continued commitment to the patients we serve.

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