Hospital News Roundup for May 25
A consultant's report released last week outlined a plan for Doctors Medical Center in San Pablo to reduce its growing debt and remain open, the East Bay Business Times reports.
According to the report, hospital officials by the end of June need to dedicate at least $10 million in short-term funds to operate the hospital through January 2008. The report also found that the hospital would require an additional $10 million in 2008 and between $4 million and $6 million annually in future years to break even.
The hospital in October 2006 declared bankruptcy and currently loses about $2 million monthly.
The hospital's management authority must vote on whether to go forward with the plan. Officials in the meantime have applied for distressed hospital funds from the California Medical Assistance Commission (Hogarth, East Bay Business Times, 5/18).
AHMC Healthcare has signed a nonbinding exclusive letter of intent to purchase San Gabriel Valley Medical Center from Catholic Healthcare West, the San Gabriel Valley Tribune reports.
CHW in September 2006 put the 273-bed hospital up for sale after several years of operating at a loss, according to officials. CHW said it was searching for a buyer who would continue to provide "acute care, emergency services and care for those who cannot afford to pay for it."
Stanley Toy, spokesperson for the new owner, said, "There is every intent to continue to run the hospital as is." However, the Tribune reports that it remains unclear whether the hospital will continue to offer the same services or continue labor contracts (Ho, San Gabriel Valley Tribune, 5/24).
Sutter Roseville Medical Center's ongoing expansion project now is projected to cost $182 million, an increase of almost $30 million from last year's cost estimate, the Sacramento Business Journal reports. The expansion began in 2003.
The project will expand the hospital by more than 200,000 square feet and add specialized medical services, including an acute rehabilitation center and a neonatal intensive-care unit. The hospital is expected to increase the number of patient beds from 172 to 393 by the time the project is complete in 2010.
Rising prices for construction materials and high bids from contractors have contributed to the increase in cost (Robertson, Sacramento Business Journal, 5/18).
UC-San Francisco on Wednesday announced plans for a new center dedicated to psychiatric research, diagnosis and treatment of children and adolescents, the Wall Street Journal reports.
UCSF Dean David Kessler said the Pritzker Center will treat a range of conditions, including autism, schizophrenia and trauma related to domestic violence. The center also will help address a shortage of child psychiatrists that is "approaching crisis proportions," Kessler said.
The center is expected to open in March 2008, with initial funding from a $25 million philanthropic donation (Allday, San Francisco Chronicle, 5/24). The university also will contribute $15 million toward the center (Wall Street Journal, 5/23).