Alameda Hospital Outsources Management to Consulting Firm
Alameda Hospital and El Cerrito-based consulting firm Delta One Partners have entered into a two-year contract that transfers day-to-day management responsibilities of the hospital to Delta One, representatives for both sides confirmed this week, the Oakland Tribune reports (McDonough, Oakland Tribune, 5/6). The Alameda Health Care District board last week at a special meeting unanimously approved a $69,000 monthly contract, the Alameda Journal reports. Delta One, which "specializes in rescuing hospitals in critical condition," will handle the hospital's finances and employee management, the Journal reports. Delta One has worked for the state to assist hospitals that have defaulted on bonds and currently has a contract with the state to work at Victor Valley Community Hospital in Victorville. Despite receiving $5.5 million from an annual parcel tax approved by Alameda voters in April 2003, Alameda Hospital lost $1.8 million last year, partly because of a $2.65 million drop in revenue. Delta One predicts that the hospital should reduce its loss by $500,000 next year and become profitable in 2005. After surveying the facility for two weeks, Delta One developed its recommendations, including expanded hospital services for women, such as nutritional counseling and a women's imaging center. Hospital CEO David O'Neill said the hospital is aiming for "the right level of staff doing the right job at the right time." According to the Journal, hospital employees were skeptical of the staffing plans, citing concerns about elimination of some jobs. Board trustee Marilyn Ezzy Ashcraft said, "Delta One has never had a hospital dissolve into bankruptcy," adding, "They feel there's every reason we will succeed" (Fuller, Alameda Journal, 5/4).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.