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Rouge Valley board agrees to move forward with merger planning

March 15, 2014 – Today the Board of Directors of Rouge Valley Health System (RVHS) reaffirmed its
support for a merger with The Scarborough Hospital (TSH) to improve patient care services for the
communities of Scarborough and west Durham.

At its public meeting on Saturday, RVHS Board members made a unanimous informed decision, fully
supported by RVHS physician leaders, that merger discussions should proceed.

Joan Wideman, RVHS board chair, said she was pleased that Deb Matthews, Minister of Health and
Long-Term Care, stated the government’s support for the merger as a “vision of the creation of a worldclass
integrated health system serving the people of Scarborough and west Durham and beyond” and
that the ministry would commit an initial $3 million grant for the support of preliminary capital planning.

In the minister’s letter to RVHS and TSH Friday, Matthews said the “investment will help TSH and RVHS
complete the necessary programs/service and operational models, important steps toward capital
redevelopment for the hospitals.”

RVHS Board motion

The RVHS Board of Directors unanimously approved the following motion in today’s public meeting.

“WHEREAS Rouge Valley Health System (RVHS) and The Scarborough Hospital (TSH) were directed by
the Central East Local Health Integration Network (Central East LHIN) on March 27, 2013 to enter into a
facilitated integration process; and

WHEREAS RVHS and TSH undertook a process which included extensive community and stakeholder
engagement and resulted in the Leading For Patients Integration Planning Report, (November 12, 2013)
recommending the merger of RVHS and TSH; and

WHEREAS RVHS and TSH Boards approved the recommended merger on November 12, 2013 subject
to completion of financial and legal due diligence, operational financial support from the Ministry of Health
and Long-Term Care (MOHLTC) and the Central East LHIN and Capital Grants for the study and
planning for the possible redevelopment of hospital facilities in Scarborough and West Durham; and

WHEREAS our diverse communities and stakeholders have continued to express support for the merger
of RVHS and TSH and the opportunities integration of these corporations provide for improving services
and the quality of patient care; and

WHEREAS the Central East LHIN has continued to support the integration of RVHS and TSH and has
approved an investment of $3.8 million towards due diligence costs in support of this objective; and

WHEREAS the MOHLTC shares our vision of the creation of a world-class integrated health system
serving the people of Scarborough, West Durham and beyond and that vision is completely aligned with
the Government’s Action Plan goals of providing the right care, at the right time, and in the right place;

WHEREAS RVHS has recognized that further advanced planning pending the completion of the Capital
Planning work and the development of a sustainable financial plan for the merged hospital system to
bring about the merger of the two corporations is needed; and

WHEREAS the MOHLTC has agreed to commit an initial $3 million in grants for the development of
program/service and operational models in support of capital planning scenarios for Scarborough and
West Durham communities which is an important next step towards redevelopment for the hospitals; and

WHEREAS RVHS is committed to continuing to move forward on integration opportunities and the
merger with TSH; and

WHEREAS RVHS requires greater certainty on the financial viability of a merger with TSH.

Be it RESOLVED that the RVHS Board of Directors:

  1. Reiterates its support for the benefits for the communities of the merger between RVHS and TSH
    based on a viable and sustainable financial plan;
  2. Endorses continuing to move forward with TSH on the process of merger including:
    1. strengthening the governance relationship that has been built with TSH through the
      integration process;
    2. completing and building on work that has been underway through the integration process;
    3. advancing collaboration and planning on clinical integration opportunities; and
  3. Anticipating clear objectives and deliverables, agrees to accept the $3 million from the MOHLTC
    to undertake joint capital planning with TSH.”

Wideman said “We thank the ministry for the initial funding for planning of capital redevelopment
opportunities. We also recognize the needed operational investments and the requirement for us to
develop appropriate plans to address these with our funding partners. We plan to continue with further
analysis around the merger and will be conducting further studies.”

Wideman said, “After completing extensive analysis and hearing from the community, we remain
confident that a merger of our two hospital corporations is the best way to improve access for patients
and to sustain delivery of quality patient care for many years to come.”

Rik Ganderton, president and CEO of RVHS, said, “During the past year, we have worked hard to ensure
that our stakeholders have been part of the merger discussion. We will continue to engage these
stakeholders for a discussion of the facilities we will need in the future and the investments needed to
serve a growing population and modernize ageing infrastructure. We thank our TSH partners,
communities, staff, board members, physician leaders and political leaders for their work with us so far.”
Ganderton added, “The funding will allow us to continue planning for more accessible, high-quality health
care services in Scarborough and west Durham.”

©2013 Leading For Patients
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