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The following is a joint statement from William Donelan, executive vice president and chief operating officer of Duke University Health System, and Rob Miner, chief executive officer of North Carolina Specialty Hospital.

"North Carolina Specialty Hospital, Duke University Health System and the North Carolina Department of Health and Human Services have reached an agreement in principle that would permit Specialty Hospital to receive a Certificate of Need to develop a replacement hospital facility on Ben Franklin Boulevard in Durham.

"The agreement would allow Specialty Hospital to phase in beds so that by 2009, the replacement hospital will house 18 inpatient beds, six outpatient observation beds and four operating rooms.

"We are still in the process of working out the details of the final written agreement and the CON has not yet been issued. We expect to finalize the precise terms of the agreement in the coming days.

"We believe that the discussions between the two parties, along with the state, have resulted in an outcome which is beneficial to our patients and to all parties involved."