Immediate (December 12, 2006)
 
Maria McClellan / Mike Noble
Fletcher Allen Public Relations
(802) 847-2886

BURLINGTON, VT - The Fletcher Allen Health Care Board of Trustees elected Christopher Dutton to succeed William Schubart as chair of the Fletcher Allen board at the organization's annual meeting today.  Schubart's three-year term as chair expired this month; he was named chair in December, 2003.

Dutton has been the president and chief executive officer of Colchester-based Green Mountain Power since 1997.  He joined the Fletcher Allen board in February, 2004, and has served as chair of the Finance Committee of the Fletcher Allen board for the past year.  An active member of the greater Burlington community, Dutton is a director of the Vermont Business Roundtable.  He serves as a member of the Vermont Law School Board of Trustees and has served as chair of the Chittenden South Supervisory School District. He also has served as a member of the Champlain Valley Union High School Board of Directors and the Regional Technical Academy Committee, as a director of the Chittenden County United Way and as a director of the Flynn Center for the Performing Arts. 

"Fletcher Allen is fortunate to have such strong leadership on our Board of Trustees," said Fletcher Allen President and Chief Executive Officer Dr. Melinda Estes.  "Both Bill Schubart and Chris Dutton care deeply about Fletcher Allen and our community, and we are proud to have these highly respected community leaders be a part of this institution."

In addition to electing Dutton chair, the Fletcher Allen Board also elected Dr. Jan Carney to the position of vice chair of the board, and Marc Monheimer as secretary of the board.

Mead and Marsh Appointed as New Board Members

Dr. Philip Mead of Shelburne was appointed to the Fletcher Allen Board of Trustees to fill the seat previously held by Dr. Wendy Davis upon the expiration of her current term, and Steven Marsh of Newport was appointed to the Board to fill the seat vacated by Mr. Dutton upon his election as Chair.  Dr. Mead retired from Fletcher Allen in 2001 after a lengthy career as an obstetrician/gynecologist at Fletcher Allen.  He held many leadership positions during his tenure, including physician leader of the Women's Health Care Service and chair of OB/GYN at the University of Vermont College of Medicine.  Mr. Marsh is the president of Community National Bank in Derby Line, Vermont, and the former chair of the Board of North Country Health System in Newport.

Bond Issue Approved by Board

The Fletcher Allen Board of Trustees also approved a plan for the organization to borrow up to $60 million through a tax-exempt bond issue in January, 2007.  The bond financing is now subject to approval by the Board of the Vermont Education and Health Building Financing Agency, which is scheduled to meet later in December.

The proceeds from the sale of the bonds will enable the organization to repay itself for some of the Renaissance Project costs and strengthen the organization's cash position.  During the construction project, Fletcher Allen paid for some of the costs with money earned from operations.

This proposed bond sale takes advantage of IRS rules that allow tax exempt bonds related to a construction project to be issued within the 18-month period after the project becomes operational.  The new ambulatory care center became fully operational in October, 2005.

Kaufman Hall, Fletcher Allen's independent financial advisor, conducted an analysis and determined that it would be in the institution's best interest to undertake this transaction.  The organization's strong performance over the past two years, the improved financials, and the currently favorable long-term interest rates are aligned and enable Fletcher Allen to issue bonds on the new facilities.

With Board approval, the organization will confirm its bond credit rating with the three rating agencies -- Standard & Poor's, Moody's, and Fitch - before seeking state approval.  Fletcher Allen's credit rating is currently in the "triple B" category.

Background on the Fletcher Allen Board of Trustees

The Fletcher Allen Board of Trustees has 18 members. Fletcher Allen's four parent organizations - Fanny Allen Corporation, Vermont Health Foundation, University Health Center and the University of Vermont - each appoints four trustees to the board.  In addition to these 16 members, the chief executive officer is an ex officio board member, and the chair of the board is elected by the other trustees.  The president of the Medical Staff of Fletcher Allen also attends all board meetings by invitation, but does not vote.