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MODIFICATION OF PRIOR APPROVAL TO ENTER INTO A JOINT VENTURE FOR A LONG TERM ACUTE CARE HOSPITAL

WHEREAS, the Medical Center Operating Board at its May 11, 2006 meeting, and the Board of Visitors at its June 9, 2006 meeting, approved resolutions authorizing the University, on behalf of the University of Virginia Medical Center, to enter into a joint venture with HealthSouth Corporation to create a long term acute care hospital to be located in Albemarle County, with the Medical Center's interest in the long term acute care hospital venture to be fifty percent; and

WHEREAS, the University of Virginia Medical Center desires to proceed with the development of the long term acute care hospital but HealthSouth Corporation has decided not to participate in the joint venture; the University of Virginia Health Services Foundation, however, does wish to participate;

RESOLVED, the Medical Center Operating Board modifies its May 11, 2006 resolution to permit the University, on behalf of its Medical Center, to proceed with the creation and development of a long term acute care hospital in Albemarle County, with a cap of $15 million on expenditures; and as necessary to form a joint venture with the University of Virginia Health Services Foundation for the long term acute care hospital business, with the Medical Center interest in such joint venture to be at least fifty one percent (51%); and

RESOLVED FURTHER, the Vice President and Chief Executive Officer of the Medical Center is authorized to negotiate this long term acute care hospital project, including the leasing and acquisition of real estate and the terms of the joint venture with the Health Services Foundation, as deemed necessary or appropriate by the Vice President and Chief Executive Officer, and to recommend such transaction to the Executive Vice President and Chief Operating Officer of the University for approval; and

RESOLVED FURTHER, the Executive Vice President and Chief Operating Officer of the University is authorized, with the concurrence of the Chair of the Medical Center Operating Board and the Chair of the Finance Committee, to approve and execute contracts and other documents, and to take such other actions as he deems necessary, for the creation and development of a long term acute care hospital, including any joint venture with the University of Virginia Health Services Foundation.