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Scott & White announced Monday, February 8, 2010 the start of a renewed search for property to build the Lake of the Hills Regional Medical Center after negotiations with Crossroads property owner/developer ended last Friday and terminated a contract offer to acquire 22 acres located south of Marble Falls near the intersection of U.S. 281 and TX 71. The Crossroads developers have not completed any of the improvements that were required in the original agreement.

"We are moving forward with the plan and commitment to build a regional medical campus with a hospital and physician building," said Alfred B. Knight, MD, Scott & White President and CEO. "The City of Marble Falls is making progress on their commitment to bring water and utilities to the project location, and we need to keep up the pace so we will be ready."

The developers and Scott & White had been negotiating since September to amend the original contract to accommodate the developers’ needs, but were unable to reach an agreement.

Existing plans for the medical complex include construction of a building for physicians and a new hospital with 75-100 beds and more than 250,000 square feet of space. The design of the hospital allows for adding space and beds as future needs occur. The list of services in the plan include a 24-hour emergency department, cardiac services, operating rooms, maternity services suites, endoscope procedure suites, cancer services, and a variety of other specialty services, all

supported by comprehensive state-of-the-art imaging technology and other diagnostic services.

"There has been a great investment of time and expense already on the part of Scott & White. We have taken this action so we will be ready to start construction of the first building when the city’s utility construction and other needed improvements are complete. It is unfortunate that we could not make this deal work, but we are confident we will be able to find property necessary to build the medical center," said Peter Brumleve, Scott & White Chief Strategy Officer.

Local leaders announced Scott & White’s affiliation with the project and its plans to build a full-service, acute-care hospital and medical office building in 2007.