REDLANDS SURGICAL SERVICES - Page 31




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               Between 1990 and 1995, the number of surgical procedures               
          performed at the Surgery Center increased 10 percent.  Over the             
          same period, the number of outpatient surgeries performed at                
          Redlands Hospital decreased from 2,239 to 1,864.8                           

          Procedures Authorized To Be Performed at the Surgery Center                 
               The General Partnership agreement specifies the types of               
          medical services and procedures to be available at the Surgery              
          Center, which include:  Arthroscopic surgeries, laproscopic                 
          surgeries (including hysterectomies and appendectomies),                    
          conizations, tonsillectomies, herniorrhaphy and eye surgeries.              
          When such procedures involve a higher-risk patient, they are                
          performed at Redlands Hospital or another acute-care hospital.              
          The decision to perform surgery at a hospital rather than at the            
          Surgery Center is exclusively a medical decision.                           
               The General Partnership agreement generally provides that,             
          unless otherwise approved by the managing directors, the Surgery            
          Center will not perform new surgical procedures until they are              
          available on a nonhospital, outpatient basis at a majority of               
          freestanding outpatient surgery facilities in the area.  If the             
          managing directors deadlock over approval of new procedures, the            




               8 The administrative record does not reflect the number of             
          outpatient surgical procedures performed at the Surgery Center or           
          Redlands Hospital since 1995.                                               




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Last modified: May 25, 2011