SAC MIN 1996-02-08 - Laserfiche WebLink

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ITEM 1-SEQUOIA HOSPITAL ISSUES Sequoia Hospital Board of Directors President Brent Britschgi discussed the many issues facing Sequoia Hospital at this time. He announced that 20-30 people are being laid off this week due to the economic situation at the facility. The hospital was originally licensed 45 years ago for 438 beds and was previously averaging 220 patients per day, but is currently servicing only 140-160 patients per day. The revenue has been steadily dropping and they lost $1.5 million just last year. Sequoia Hospital is a $120 million per year operation and expenses are continuing to increase and revenue is decreasing. He mentioned that many hospitals are finding it very difficult to operate. Kaiser Hospital in Redwood City is assessing their future and Sequoia is currently talking to Kaiser Hospital about taking some of their patients. In order to look for a resolution to Sequoia's economic problems, the Board of Directors commissioned a study by an outside consultant to look at the options available. The study recommended looking for a partnership, affiliation or sale. As a result, a request for proposal (RFP) was sent out to 105 hospitals throughout the United States and three major responses were received. From these proposals, the Board is considering an affiliation with Catholic Healthcare West, who also owns Seton, St. Mary's and Mercy hospitals; or a sale to Columbia, who just purchased Good Samaritan in San Jose. The Board is now in a "due diligence" or fact finding period. They recently visited Mercy Hospital in Sacramento (a Catholic Healthcare West facility) and are planning to travel to Florida to look at a Columbia facility. They are touring various facilities and interviewing their doctors, nurses, and board members. Mr. Britschgi mentioned the Board is looking for community input on this matter and will be holding several community forums for this purpose. The meetings are scheduled for: February 27 at Carrington Hall, 6:00pm; March 4 in San Carlos; and March 5 in Belmont. He noted that during the past 2 months, many groups have spoken at the Board of Directors' meetings regarding the sale or affiliation with both organizations. The Board has also received a petition from Sequoia Hospital employees recommending the affiliation with Catholic Healthcare West. The employee unions have also made the same recommendation. Mr. Britschgi stated the Board needs to make a decision as soon as possible. He explained that Sequoia is a district hospital which is governed by a law which states that if you affiliate with a non-profit organization which amounts to a change of 50% or more, it requires the vote of the district. The population of the district is approximately 250,000 people and $3 million of Sequoia's budget comes from those taxpayers. He noted there is no law regarding a sale to a for-profit hospital. Columbia's original sale offer is approximately $100 million. Of that figure, approximately $50 million would pay off hospital debit and the remainder would go to a foundation and the