REDLANDS SURGICAL SERVICES - Page 32




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          arbitration provisions of the partnership agreement do not apply            
          to break the deadlock.                                                      
               Petitioner's appointees to the managing directors have                 
          successfully blocked various proposals by SCA Centers that                  
          additional surgical procedures be conducted at the Surgery                  
          Center.  For example:                                                       
               -- SCA Centers requested that Redlands Hospital transfer all           
               of its outpatient surgery volume to the Surgery Center.                
               Petitioner's appointees to the managing directors, however,            
               did not feel that this was an appropriate use of the                   
               facility nor in the best interests of Redlands Hospital and            
               voted against this proposal.  As a result, outpatient                  
               surgeries continue to be performed at Redlands Hospital.               

               -- SCA Centers proposed that the Surgery Center offer new              
               surgical procedures that would require the patient to stay             
               overnight to recover.  Petitioner's representatives did not            
               think this was an appropriate service to offer at the                  
               Surgery Center and voted against performing these procedures           
               at the Surgery Center.  As a result, surgical procedures               
               that require 24-hour recovery time are performed at a                  
               hospital.                                                              

               -- SCA Centers proposed that physicians be permitted to                
               perform retinal attachments at the Surgery Center and                  






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Last modified: May 25, 2011