SHARP HEALTHCARE: FACING LEGAL, FINANCIAL DIFFICULTIES
A year ago, Sharp HealthCare was the San Diego-area'sThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
"largest medical system and was poised to grow stronger through a
partnership" with Columbia/HCA Healthcare Corp., the San Diego
Union-Tribune reports. But times have changed significantly
since the California attorney general's office issued a
"scathing" report last November on the proposed Columbia alliance
in which the state "threatened to sue to halt" the deal. Sharp
officially pulled out of negotiations with Columbia in February
and is now "selling one hospital and may lose another in a
lawsuit." The "six-hospital Sharp group" also reported losses of
$20 million on operations in the fiscal year ended September
TONS OF TROUBLE
Sharp has decided to sell its Murrieta hospital because it
can not afford necessary reconstruction at the facility. In
addition, the Union-Tribune reports that "Sharp was ordered to
pay $18 million to its biggest affiliated doctor organization,
Sharp Rees-Stealy Medical Group, which contended [that] it was
shortchanged in reimbursement for providing care during the past
two years." And Sharp has still not resolved its dispute with
the attorney general's office over the failed Columbia merger.
Although Sharp "gave a copy of the independent counsel's report
on the Columbia deal to the state" in August, the attorney
general's office "found the report to be insufficient."
According to sources, the problem is related to "the financial
costs of possible missteps related to the Columbia/HCA proposal"