Long Beach City Council Approves Loan for Medical Center
The Long Beach City Council on Tuesday agreed to provide a loan of up to $2 million for repairs at the Long Beach Community Medical Center, potentially paving the way for the hospital to reopen, the Long Beach Press-Telegram reports. The council also agreed to a 20-year lease with Community Hospital of Long Beach, a group of former Community executives, physicians and nurses to manage the medical center. However, the loan and lease have a "host of conditions." Under the terms of the deal, the new operators must raise $17 million in capital to cover most of the reopening costs before the city will deliver the loan. In addition, the group must obtain all medical licenses by July 1, and the hospital must turn a profit by its third year of operation. Finally, the operators cannot ask for future financial assistance from the city. If the new operators fail to meet any of the terms, the agreement will be terminated and the city will resume control of the facility. Citing financial losses, Catholic Healthcare West closed the hospital last September, and the city took over the property (Gewirtz, Long Beach Press-Telegram, 1/24). A group of physicians and residents fought to keep the facility's license valid until a new operator was found (California Healthline, 9/12/00).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.