Communications from William T.

Solomon to Southwestern Medical Foundation Trustees, Honorary Trustees, Staff and Special Friends, regarding Dallas Morning News coverage from the week of April 22 To: Southwestern Medical Foundation Trustees, Honorary Trustees, Staff, and Special Friends

From: Bill Solomon; Chairman, Southwestern Medical Foundation You undoubtedly read in this morning’s newspaper about the UT System report which was released yesterday to the media and which alleges that Kern Wildenthal exercised questionable judgment with respect to expensing and documenting reimbursements for travel and entertainment in connection with his various roles at UT Southwestern Medical Center. Though the Foundation is not involved in any of the allegations, the coverage quoted UT Southwestern President Daniel K. Podolsky as saying that Kern “will not continue to serve as President of Southwestern Medical Foundation in the future.” All of this broke yesterday afternoon with the UT System’s release of its report. Late in the afternoon, I was contacted by a reporter at the Dallas Morning News, who asked for my comments. In response, I gave her a statement, including the following: The UT System report and the news coverage which will undoubtedly ensue is unfortunate indeed, because (1) it is my understanding that Dr. Wildenthal did not have the opportunity to fully respond to the report before it was published; (2) after years of close association with Kern over many years, I and others have seen nothing less than the highest order of integrity and ethical conduct on his part; and (3) Dr. Wildenthal deserves considerable benefit of the doubt in this matter by virtue of his remarkable accomplishments on behalf of UT Southwestern over 22 years as its president, during which he led the development of a young regional medical school into one of the nation's leading academic medical centers and raised unprecedented levels of philanthropic support to make that possible. I further told the reporter that Kern remains President of Southwestern Medical Foundation. Dr. Podolsky’s statement yesterday was meant to convey the fact that Kern’s status with the Foundation and/or UT Southwestern will likely change at some point as a result of the UT Regents’ having decided that they want him not to continue to be CEO of the Foundation

while being also a full-time faculty member. Thus, details will need to be determined among UT Southwestern, the Foundation, and Kern concerning the orderly resolution of this issue. In my view, this whole matter is a tragic tempest in a teapot. I am convinced that Kern always believed, and still does, that he never failed to comply fully with the UT System’s prevailing policies and practices with respect to his travel and entertainment expenses. Others, who reviewed his expense reporting at the time, agreed. Now, in the face of media attention and criticism, the UT System appears to be moving the goal posts relative to where Kern understood them to be, and both the UT System and the media are taking him to task based on a re-assessed standard for what is reimbursable and in how much detail its business purposes should be documented. Moreover, it seems to me that the UT System’s position and the media scrutiny are very badly lacking an appropriate sense of proportionality; i.e., due consideration of the amounts of money involved in the expense reports that are now being questioned relative to the far greater magnitude and importance of Kern’s over-all activities, budgets and responsibilities. There may or may not be room for criticism of the way Kern handled some of his expenses over a period of many years. But all things considered, it is tragic and terribly wrong that Kern is now being crucified for this in the public forum near the end of a uniquely remarkable and praiseworthy career of leadership and service. I trust that you join me and thousands of others with strong support of Kern during this most difficult hour, full confidence in his long-demonstrated unimpeachable integrity, deeply-felt gratitude for his remarkable service to UT Southwestern and the community, and an expectation that he will continue to be fully available to us all to contribute his many talents to the ongoing development of UT Southwestern and to its patients and the communities it serves.

Bill Solomon