Work Begins on Second Health Care Facility in St. Paul's Phalen Corridor

Market Wire, March, 2006

Construction is now underway on a second health care facility in the St. Paul's Phalen Corridor development. The 124,000-square-foot building being developed by Frauenshuh Companies is located across the street from the HealthPartners Specialty Center 401, which opened in October. HealthPartners and Gillette Children's Specialty Healthcare will share space in the new building, providing a variety of outpatient specialty services. The building is scheduled to open early in 2007.

Similar in size and design to the neighboring HealthPartners Specialty Center 401, the four-story building allows the two health care organizations to centralize outpatient services at a convenient location for patients. The facility also helps alleviate congestion at Regions Hospital, where many of the services are currently provided.

"Gillette and Regions have a long history of working together to better serve the needs of our patients and our community," said Brock Nelson, CEO and president of Regions Hospital, which is part of the HealthPartners family of care. Nelson noted that Gillette has been located within the Regions campus since 1977.

"We see this as a natural expansion as a result of the increased growth of our hospital over the last few years and as our focus of care has grown to include adult patients," said Margaret Perryman, CEO and president of Gillette. "We continue to value our ongoing relationship with Regions."

HealthPartners and Regions will occupy part of the second floor and the entire third and fourth floors. Features include:

--  Second floor -- A 14,000-square-foot outpatient endoscopy center
    offering a full range of gastroenterology procedures and services.
--  Third floor -- Specialty clinics for orthopaedics, sports medicine,
    podiatry, urology and gastroenterology.
--  Fourth Floor -- A 31,000-square-foot same-day surgery center with 10
    operating rooms and advanced surgical equipment.
    

Gillette will occupy the first and part of the second floor. Their services will include:

--  Adult specialty clinic.
--  Adult rehabilitation.
--  Adult assistive technology.
    

More than 340 employees and physicians will work at the site. The two organizations will lease space from Frauenshuh Companies and the St. Paul Port Authority, which own the building as part of a joint venture.

Contact: Chris Iles Phone: 952-883-5301 Cell: 612-247-9119 E-mail: Email Contact Contact: John Barrett Phone: 651-229-1723 Cell: 612-616-8533 E-mail: Email Contact