HomeMy WebLinkAboutMINUTES - 07191994 - MR.2 MR. 2
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
DATE: July 19, 1994 MATTER OF RECORD
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On this date the Board of Supervisors heard comments from Mr.
Paul Katz, Local I, on the County Hospital issue .
THIS IS A MATTER FOR RECORD PURPOSES ONLY
NO BOARD ACTION TAKEN
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REFERENDUMPLEDGE ' M
Motion by the Contra Costa.,C00111ty.,,.. o�r� �f �uperv�sors
A� S�ospend �Q�ts��ri�ctlo� of #he��1��'Coun:t_.,,... flosp*taI and
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for Uo#erg Approval
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Pursuant fio my d�ti�s:a�d..............
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public oial to represent Che fest interests of the citizens
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and taxpayer s �f my Superv[sorial district, I t1�.hereDy
pledge to suspend �bristruction plans fnr the epl�c�rrient
of wr iihevu Hos�iia! u�itil such plans, haue beers lhor� ,
oughly°debated_ and approved �y tkie "voters of �a�iira
Costa County in ori official ballot me�s�ire.
.TOM POWERS , District I . Date'
Chairman of the 136ard
�. SAN F..RANGISCO BUSINESSTIMES t ' dWEEKa
-OP Q:N b M
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County hospital proponents
1* 1 • t3'. P P P argue
that the,system is needed?as a"safety
? net"for the poor.But health-care
PI'ognos lS■ ,f trends suggest"thatin the'future,the
x u , , ., only`ones landing in-the net will be
Whitt
t t `��
Whitt 'h f ' The issues facmg county hospitals
4 .�-w, q• r, are the same as those facing private
q health care providers during:a period
SICk nth
'19 mbition of massive changes'in the'health�are
Medical-industry experts have" industry:And while'private hospitals'
` i''" have'had,toFcut costs and`con`"solidate
studied thenymptoms,and made,a .} `.'• � _
diagnosis:-Four:bay�Area counties:_ many California counties have
a're a fllicted'witha'spending ; abandoned the hospital business .
disorder: ' I` - altogether. .
Alameda;Contra'Costa,San Mateo,., Michael Gallagher,president of the
•and Saiita�Clara counties are Hospital.Coiiricil.ofNorthern`arid- .
re arui to disperse$550.milhon m Central Califorma,'said counties '
p P, g P -
state'and federal funds to'renovate' 4 y must face a'critical`question "Is there.
S3 14: '}, &G i;� i*jt 1 1-�K :.66 ($< n ! ..:..
and rebuildcounty:hospitals y; •the necessary capacity.for•us to have:.,
.p � s-�' � ' our own hos ital?" '
despite a slinnkirig patient volume � P
and agrowing abundance of empty �F.orhospitals with a`spending ,
hospital•beds ' ' t ;disorder;inthe answer lie`s tlie:
tThe�construction is funded through dire.■
....
,16 's'state- enate Bill'1732;which• k
says�hospitals''t at serve''an,
unusually large'percentage of Medi-..'
Cal p6tiefitsi can get up to 50 percent
of their,coristruction costs covered:
Thus tempted ,the:quartet of counties.,
has chosen to put,aside common
:sense and pickup a jackhammer.
,This-`should come as no surprise.
All the"classic symptoms pointed to t.
sudden bout-of.binge:'spending.
__Symptom.No. 1:Loss of touch,with
reality:The new construction comes:.
as'competition"iis rising for the county'
hospitals'traditional role as;l
i
providers of care•to tiie'poor.',The
state-is,encouraging Medi-Cal
patients=;the'poor Californians who
make up mu&of the county;; t ::.•
facilitiespatient loads=to move
into`Medi=CaIHMO'programs. "' t
Managed=care;progr'ams encourage
out-patient'care;•meaning fdwer.'.
hospitdFS_tays; a
t,s YSyinptom�No 2:'Disregard fora,
fiscal'health Altlidugh tfie state will"
pay a large.portion of construction`
'costs°thetconnties�must still fill their
"lieds�If they`can't,"they�will,suffer big ,
,':oper'atuig'losses'and'may struggle`to'"''
niget<bond payments for their�share..
I
of the tab- , ,
x t
Y fi3...
t � -.. x.d 'T't4� f_§a e .�. 1. -` �d,nE-Y t,h ..us.^K. t :.
`" WEEK�OF'JUNE 123 1994° i ti x ttrSAN FRANGiSCO BUSINESS;TIMES
7
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. �� -_.7*�g.,.r,,,,.�.°....a�,.n^-.rs:::��....'::�:z_.....�..,� ..�..=:�,.L:•:�'� �....:r rtu...�"•L"hh.+:�-�..�""t��:.e:�,P�''`^ '
• _ .��� 71Gg h7°Li 3 kaw ...r e 'y-u�..,����•}ta. 1,.r,,, .�'y t.�-����2:'•Y.._yti a.-.sx,r -t '.� — ----.:>
k o�~ ebloo eattin armed
m5 aay r 2ryt1
x1 h't
V r" •°tZk',akur +3�ia" 'w7"`
� t-. t ...• k -ar . ems= u '�-
����at� al��4#Pacif4�c��M�edyw�Ceniter��s�
�.j 4' �1-.-$ .qr'�p' �.o-'Yt�°':.'34��5� 2i'�'R'.`31-'�`�ic§_ p�'�£Ip.rl ii��,�.i.,�.,Y.3T'`A .vim' y •"`.;*Y"L `C� ' < S � ��
Y Coti
ntLnUed, Oye 11IT1 K recommen a ions -
,.? .�1 .wna..+ •- er�rrPS.- - _._ g°i i. t k v-k' -`,.°?.;
• - uc a � r k s nlike r 5 „ya xi>:�a
,pital,not�ucross townrivalsSt s ut e` so orm a ospitalsaf
a .... y,.',d ar zit--Wil' e.'R`"'. Y &--L ,_ r," ,�
Mary s�Medlcal Centerrand,Saint F an�`�gip`medical"staffxand�employeesklid his op;
cis MemonalHospitalSenfhng told doc motions arelimited r
tors and em to ees last monthIf�1t'dces
P Y "The realities of�health care finance�r
r"51i. x-•51
snot its creditors are likely to ado rtheJob; wherepnvate andagovernmentmsurers�
a�"r afia "'e'Fw" �o�°'' r"'.atm..+ ;'ke�'.aa-4�xSr-z`3�,f' `ra. a t"v` 'l' `s'E *".as' 'YA
SerIlmg rreportedly�warneclk� �; � are wieldmg ncredible power,over ally'-
Despite500 layoffs since January1993r�,provider8�,d wands 'that we place
an icon muous cos cu Ing, ed a exythmg on th�etalile`�`forexammatiion r.
7 dti .s=f- e ,>>" .'° rhe' fir+, x� e-. .
California Pacific has been aunabl' toy and`analysis SerIling+said in a��May;311
v ' r eM
sto fits Pfinanc,iYahemorh4
ge:v tkto&t memoAd
the hospital s medical staff Keyr
wily lost�$6 millloni on'�hospital opera , insurers MV ade t�cleai�thatatliey� '
(tions through March 31 Mand is�on trackparen't vlhngto�support the`'hospit`al's
;1696Maniestunatedi 18$million'to 20r`� `" 'F¢
$ $ education research and commumty ser
milhon'uy+1994pF ces�progra�m;Iie said
g,x Pre dff)A1163memo Serfliiigialso questionied
ust�the be
hospltal;coris iltanit_Wanda Jones l"You kwhether_Cahforiia Pacific could"contin=
» "�- 7e dry l._ _]y Y -
have not yet seen the bloodbaths 1 ue to operate 1n a university model with
^.s'a• ]r }y ss, w�ri` •"x�i m, bg 'f i e`ens ! x.= i
Other observers agreedlthat 1i adds ',ZNUthe�kmd�of$endowmentenJoyed by -
tional cutbacks,bemg proposed at Cali Stanford�or the'taxpayer support;ofUC,"' 1
�forria Pacific are the inevitable result'of ref rnng toSt fgrd Universty�Hospital �
massive(changes in a wayAO
health:care and UC San Francisco s medical center
"The hos`1talmust`consider
is a ivere s an_ o eraman ed�F ;U a p p
care o ganiz -ions are}s ric yam„r tmgf tions�`4�if'we aretto have aYviable(future;"
� nsive s.eci 'L x•a <:
� P � an.�are�=1he�saiil�-`Tve'declicated�myself�to�this in.
y_g Or_IlOn a entaex f " $ z Y r a s.j �v , >
_ _ stitutlon for 20 years and+I can t n ecall a
peeie aupoessionals , naroon tHan'
ug- erF ospitalbills x- Jim
w. ,r r, Gc ✓'.¢. .4
e new prop"a s come just five ;W. Any significant reconfiguration of Cah
IS` Z41y'rr M6 5. 'i! S's' A fi 11
monthsYafter CaliformaWPacificsSboard of t x, ""�
f pi�_point could also call
onn1P- i'i. Ft31 -
directors approved a f v yea&Atrategie 4 mto question the"health of the California
plan deslgnied to overhaul the facility I--HealtlicarerSystem the;fdff hospital
.� Y S "RT"i*.. r, ,. .r aY;k �u fas,1 '1 T = t 4y k. r
The boardrls expected;to consider Ser San Francisco;basedinetwork iii which
fling's latest recommendations earl 'z .-i .
California Pacific has=been�the�crown
month and opposition is already fo ma + jy �i � Fb`x xis '
g ,�� ,� 3 4b ,Jewel Becauseits strategy has,always'fo-�
y r x,r ctised on providing�high-end'car'e some
FInsteadtoffSerflmg's�restructurnng� s � •� x� ''� '
-'�-r� -__�'� �r�;:�: .•. F _ -:�_ _.,; �souxres•say CHS s raison d etre�could;be _
,some factions within the�two campusi', ��" '=�= ..
under mmed if California Pacific resur
Hospital rare clamoring fo the closure of , v� �= t
�...� middle;,of the-road community
its so called California-Campus(formerly
e r rs a r llOspltal #mssas ��, ; r "
children s HospntaI of San Francisco), ��S6fn has faced mtense me
� t
which 1A bemg:converted into a pnmanly cisme from some doctors and,_11`,
mployees
outpatient center Meanwhile,the hospl rwF_ r �. m
, , over�the,proposed changes However,
tai also aces, possiblerevolt;by'its�Lso1 se`�to th s tuation uisist that
OB/GYN doctors, who are talking about Serfiln still,has the confidence„of lis 1 t
takmg their business to St SMary's, 1n } and 1 e elements of the medical
,s... >t8` ¢ s�..was-7vrh$�"'d}" t' p' .� t1 § d t^,
formed sources sa t n �' ' — �" �- �
Y staff and the employee popM.
ulation I
In alwntten stagy went Serflini con
46y �, , i� ,r cog- Nonetheless, h1s hospltal has hemor
firmed the boardtwill�vote on'changes�m �rh�a ed k`sm a 1t was cr'ea`ted b 9
a' y .'s .rF-u - �'p a-?7•...�3'� '%'.g y, �2'Since
.`�st r'+*it• y°fey i
strategy and services withm two months, Ltie 1991 merger of Pacific{Presbyter an r
and that those changes will- irbeyond �M n VAn n's�HosPital�
the clinical reconfiguration that will be
In ani,ranclsco�iIl= as ap rp oxi�-:
completed by,July 30 _�, ma y9 on mreaerves but Serer
.a- Y•�L— _� •s .3T ._t—:"t. b G..�4"v. 3 .0 1..c4 :..�.�yi"''=c
5 e flng oul�d not be reachedtforrir� flingtoldemployees lasmonththat, #t
tM comment about the hospitals plans, thescurrent rate;that money-would u=
or about`h1s own�future�wlil h�some�""appea withm four to�fi a yearsK ,
sources say.couldsbe 1n Jeop'ard�yY&Iri a� ��"Wat�1s the pmt 1�n,,that? he�said,�,�-,
May 25:employee foruin,'Serf]"�iig repol'��. a:ccording to�Fan�lnte�nal�h�ospital�,
edl�told employees that s cri 1cs will� memo.!- `
e Dove"nsize or die, hospitals told.
Cutbacks .can
avert closings, Downsize.to sumve,. hospitals told
report says N HOSPITALS they did not plan any major re- manager of communications for
front Page 1B structuring beyond converting O'Connor hospital. "Fewer hospi
BY DONNA ALVARADO some of their hospital beds to tals will be in the county. Th,
Mercury News Staff Writer ry Healthcare Institute in San skilled nursing care, an interme- hospitals aligning themselves
Santa Clara County's 13 hospi- Francisco. "If it were not for diate step between hospital care with network systems, includini
talc face.astark future,according their (financial) reserves, you and nursing home care. physicians (as O'Connor is), at-(
to a new report, that could force would find hospitals closing mo- "We don't really think the pie- going to make it. It's like a retool
them to downsize drastically o►• nwntarily — h► l.11e next 16 111111- lure is that, bleak," said Graham, Ing effort.."
see nine of them go out of busi- u�
ness. "Within the next five years,
In the changing health care cli- : you will probably have involun-
mate, there won't.be-n•.need for.;' tary.,closures, .she added, "Your
all the hospital beds avallable.In= ' choices are whether:they are ran
creasing efforts to controi health';: doM..or',planned.'1,y.
care costs will.•lead: to patients.., '' Iiut',isome hospital representa-
t getting more care outside the ho,tl tives.`said Tuesday they thought
pital, ,decreasing demand for:. ttie report.might:<be too bleak.
i. beds. Hospitals Ghat don't down- coij"Fewer hospitals will-be in the c l.(�✓G 1 ��
will bsize e left In alfinancially Precir�` spokeswoman ort0 Conhor hleen Ill s�
1 �nous position.;;.. '. " �`1' ital.'In San Jose.:"But we'reo
There ort released, ing';to' have an older and.sicker
p yi`'`' population, We're going to need
0 was commissioned'by Good'Sa-;! : to take care of that population."
maritan Health Systems ,. . the
tt.. •. New-rOentury did similar pro-.:
network of four;local;;hos rtals,z;+
pro
,.,,,network jection9 his year' for:all`of:the
formerly known as Health Dimen�� �� ; . „
8011' Y Bay.Areas;,73.,hospitals; It`pre
Bions Inc.A spokeswoniati foi'the :, •dieted up to half would close in
network said, the .report:was:;'.i the next:10 to 12 years.-The new
made public in an effort to collab=`
rep was.deIive0d,at,a.break- .
orate with other hospitals and':;:
Rist a'ttended. by,�i ospital and..
y community leaders in planning commuhity leaders
& in$an Jose r ;
for,the,future. :They Good�Sainaritan.,network
P '.'They're the ones tliat are go already•has announced 1 plans to
r; ing to shape the future of health C110ts budget by $26 million and
'care in the valley,"'said Christi''' consolidate some of its:medical
'i Welter, spokesrNornati fol'Good j services.•Within the network,the
Samaritan hospital, most likely to feel the
lit the report s mosf'.'dai ntliig ftfst cutbacks is 629-bed San Jose,
scenario, in whldli".liospita�s:`Ye Medical Center; which serves`a
i
fuse to downsize at all;_.excesii heavily ethnic:populution in East-,
capacity would lead .to a dowH=�; and,dow toWit'�San'-Jose. Two:
Ward financial spirat.!that could`, prOgramslikely to get thp,ax are
close nine of the 13 hospitals by•!; cardio44cular surgery,,and an-,
the year 2006.In another draniat=`1' gioplast ',.Which also::a a provid-
k scenario, all 13 would remain', ' ed"9f Good Samititdn 0 Iptal.,
open but only by shutting down:;; .rThereIts pain in al 6 Alds,".:.
,.two-thirds of their bed capacity'' shid:;:MlAael Guthrie,�president
and operating on a weak financial and{chief-•exceutibe ofhcec• of.
base, Good Samaritah;I;lealtit Systems.
A more likely, Intermediate so- 'i Akthougli),Guthrie denied•',in Feb-.
lution would.be for:five.of the 13 `'-I ftikey.that theng-was any�chance
s hospitals to close, with`the eight"; Sah: efJose Medical Center._Wotild be
survivors cutting their,size At- closed, 'he;`r' u'sed 11.iesday to
most in half.`' '' ":'" "' ' M6e out thb.possibility of closing.
"This county hasa fairly seri-`�'� any;of the network,'s hospitals:,
t' ous surplus," said Wanda Jones,:. within the next yearn
..;,president of the group'that'pre:,;:) But he added that he had made,
,.pared the.report,the New Centu.- . 6i7.`commitment:to staying.in the
" Sa1t;3ose Medical.Center location
&eHOSPIT.",Back Pagd lq,some form,:though;"what goes ;
t ^>- 0 iii that location,Wlh•bd aramat-
Icahy different inthe next,six to
elght:years.''
1^'Anne Moses, associate director
off the county's public•hospital,
Siirtta.Clara,;Vahe.y Medical Cen-
ter;;reacted cautiously to there-, ,
it ;';'It's provocative,:and that's: .;
od;.':'•
she.said.,'tut it's superfi-
tial.=:and that's misleading."
!,;i The report did not analyze how.
geography and patient population
could influence whether financial
pressures,force some hospitals to
close, she said. i,,. t,
.Moses said the::report would
not influence,Valley.Medical Cen-
ters pians to build a,$200 million
re"placem6rittor,'its-aging main.
h4ildingi:Some county.officials•
have questioned whether the pro-;
Ject;is too,expensiv6;.and,too,big.,,
.
._ jut Moses;held,firm Tuesday.
aVMC is not.interchangeable with
ftiiy,;otlter hospital in the county,
slie said, it would be unwise for
the public:hospital..to_:downsize
because it serves'a population of,.
titil'dAured:and ,loW•1ne0m0,,pa-;
�lerlts Who are not usually Wei- ,
came at other hospitals, elle said.
:'Other hospital executives said
ve ra=.rte v dt' v f
���County hosp�tals�-�rr� Y
�plan� 50M
ne�u�constru�tion
i
�WCHRIS RA_UBER• Z-"'
1,�'"";"`Rosi,Hess Tirrres staff vmte� �`" " ,�•s.a,��
Four Bay Area counties areYpreparing y
to spend close to WO on torenovate
and rebuild existing � � 1
county hospitals,
ieyen though¢tfie
gion's hospital in
ustry is suffering,,-....:,,.�?
vfrom shi7nking_pd
tient volume
ocean of empty beds r
The counties �5mr
Alameda, Contra rt
Costa, San Mateo Robert en
`and Santa"Clara
:x
:say there val advantage of a vanish
ing opportunity for so=called "dispropor
Turn'to page 17
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Y 2y` rte * il { 'MCtiC'ortanuedfrom a-•�! �tik-y 5* r��fi u7
_+ . aN t zf�, ��� �formerstate�director ofthealth services��-�
'r r sMally Coye, saysWUYalley Medical Lente s;ff s1
„ dreamsgmaycomecrashing toearth€as
cediY ..,, r sr
_�,q, k= } �healthxcare�reform and Medi Cal man
e d-
�,�`�`�ragel�'care�`eat�into�its patient,valume����
`C .ry y+ £y:,'.-,. 9Lk"4*w'.l F 1h F
c z � SFurther;a 1994MSanta
ded Clara�County,f X ,-
1 vgrand�ury report'recammen �thattthe �
icy 3 d ao
�wliagli,*�countyxreview itsigptlonsbefore proceed. "
G t- a`�x "i7=c i .r. zQ
r . Axa ' �'` 1Tlg,with the
;me o. edly the+Coon wsF
h s�=� � ty'simost expensive'capital;prqJect ever ,
N M- ~ * ��'1. D ContraCosta'officialsare embroiled
n �-�' r'3 Xltl.3'' >,A' t -•t� a e- is
Illfita8lmilar�COntroYerSy OVerkplan8 tore= R
'M,
f:Q*1tuajH '�� t
Merrithew 4Memorial Hosprtal7liwj
t ti A . Martiuez�w�th�anew 144 bedfacility,
�! iwl�cliwillYcos $1256�millionsupfiront
t Lr A?NA k h �t9 Gt�?5r I w p� i' ��r
*S y�T' •t S`s.'§-kcm F'�ra y.ncludmgprepaidinterest; t�,�.�, M � '�:;-
``x' t X 4'''S 3' -i e *iGr s.„• r +✓. atxev�M e
" ' � t'*�Furancxally pressed�&i r I iablo.Medicals I r
�a s tr. r a r{ rp Vie.
' sem }: f4 Ceriter � Concord and+•San P2ablos,
-91to,ase •v sx s 3 C fisfi r^" 1
tp
Braoks�deHospital haveoffered to��oui
?, -Wfor s rvr thm, county i treatisomerof
Ul ���� the poor�and mciigent patents nowacared��
atMeirithewButfcounty supervisorsi� t
_;_� °voted lViay 24 to rlet�construction of�the ,;�,
1 J k x r s ro ? a
,,new
#} , j
Ctrt 4 x �► .Sai1�l�lateO W111 Spend=an'estmlatetl
x fiY �n �t$130nullonta fireplace its antiquatede t
MateotCounty Genaral'Hospital with
� s ati8 news110Spltal,rehak?ihtatlonrCenteraIld'
� ' a° rEmanageil=carecomplexConstruction of L��l
t , PRI .� ����� ��� the naw faczl�ty, which�wdl pro�ceed:ini,�+��
t13tage$y beg--MO n7May
r SanJMateo sXplans to build its new coin=
Alex rcon blidate_e _t ne fac .<
ilities:.and
empha6iz6lmanaged care have received
4aurelatively fit Ie crit�ciam. However;l=a
,� `�F✓rt:AFata
1993`countygrgnd fury report questloned
$ whether"axcbmplex of this'magrutude"Ls
a" +T h v3tr<xr r� ttf�: r r c fp r
; 41 cessary,46ndpSuppivisor Tom,Huenmgr'
$V Yr ri t i rSv a a:J^.
has obiectecl"strenuously to the plan
0gpi>"Alameda County,, l'a
pnsto, spend
a �$105nulhonfona new&story critical career I1
wk r •e
a { � bwlding,� quipment and Ffix t
new equi�ment'andlli�
ures, '
fk N}n �i1d SAY �5 C pat kiii iBtrii iie ion the k 1
a:. s"i'3 Srb.I_ 4 &•8= ;" ca F�}',�,int
Y # a 'siaf itsxrrent Highland General Hos
{a , rx K ami r #rsr , :$
f petal campus swell as improvements toe 5
5 Ss * } existing faphtleS r a: vs F ,1
isf3,r5` r t ^�,' ,+xy„�41
"Atfa �'�` Although the controversie Pini a ta'
�- M C
=4 r e Lara�arid Contra Costa coiintae8 have at 1
2 5 5 tft+< tb iu �'• i y '� `'m �,�.� yrpnr^e,,p j
1
< � � �tracted signifcent inediaattention' the x
:�
F � public anusmess=commumties int the
Sk;tla ey, Yt
�' g 3 C �` lw` AI
rs�" y Area a largely ignored the broad
t Q•. e i' Yrs
* y f i u x'1eFeT iSSlles fSi Couiity�haspitals au?mg a
peeriod o intens&'change in5'the local ,
& llealt�l-A n11YStry u }vSl�w?x�{ S `frY1
*:-t?i z, a`3 v..y.,
Primaril because of the SB'17,32 ;
$ a a K r 3a orb rt�i i }rr, js� ti
fundsthe fourcountiesaare able to con t
s atemplate rJe C StTUCti021 ppa r0 eCt$8t x
�w vF�i,fit?
z R {t> Fa rtuTevlhe22m�nyrp�llvate h03p 1tals amore`}
3 �� having trouble keeping their bizdge`t I
+ x^ tS { 0"u� .t"�,,a
'lag
arcceen giant Kaiser-PermanenteE
f "s`Tis jettisonmgcess j bs arid`costsk'
k; t' 1,i rest t4•' .tS'+ K
But.man �iiestions remain about the
v "very +� x,„,� �
futui.6
of c ui i y hospita s and their'vilder-
!� � `• "ori`+ f3,�'i��rOle^ � � �S�es,,#� -c.`g�' �a � ,.rx-,e a s�,�•�
s,4 mthg HaArea s health-care acture
v��-�ga �. �',.�� �`:' �.•�asr,.,v R�-` r x's se,1p�,
r7� = >k d a� ;Ma11jT4C0uI 1@$1Tl,afi&I1fOI13I$hayeaban,q
21
dared he ht3spnt—la tFusiness" toe er,,
t y ' �au^co gats' a ornia� sociation'of>
� PubhcHosptals And°those=whoremam
y iiy. s v� •Fa i j.?'$ .�•s o r'» y -�",('
N i S�faceeo,air mst3tutaonal�dilemma, accord
to;lVliichaeFGallagher,president of the
Hospital3Cqua C of<Northern and'`Central °'l
r r S L..�.tn, `at -s •-x' b s «* `fir a y,�:r .
Cahfornia:� '�F+i..i.°x
? >The}qu�estibj Athey miist%address; lie v
is+biiltal�"Is thereithe necessaryca �, f
4t
fir. } eRpaCity forus$to have aur own J-?,
�tThis}nis�a��huge�issue�within?our�.yin
r+e^� z d ^r• s� r « ti��I y n "5-^*5 d t@" t#.# +r<
„ �, >t�, KJ�tdustry,��Gallagherfadded,"but=itzhasinot` .t
. - been'an iasuetliepubhc understands
o. cr. ..r.ao�� o o n �o.. �a
n �oon +-C•-•oro ��•
mwU) oo mtn �, owm b n ° cn
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o.I
WEEK OF JUNE 17-23,1994 • $1
eWrrhatm
gra
0M.Fm hospitLal U
a, r
BY CHRIS RAUBER
Business Times stat(writer
California Pacific Medical Center, facing losses of
up to $20 million this year, is considering downgrad-
ing the high-end private institution to a community
hospital, eliminating specialties, scrapping research
and curtailing educa-
ion and training.
Calling the upmarket ti
hospital's current focus �
on cost-cutting"a strate-
gy for failure," CEO M
Aubrey Serfling has
asked the board to ap-
prove radical changes.
Under the proposal,Cal-
ifornia Pacific would re- IT
portedly discontinue
high-tech surgi�caTs e- _ o
s
ciar less uas Iver, hea _
eart and kidney trans-
plants and pediatric.
specialties, cut deeply ma
into educational and
training programs, and
eliminate the hospital's
university-style re-
search efforts. Up to 700 new layoffs apparently will
also be on the table.
California Pacific,the region's largest private hospital,
must reformulate itself as a"first-class"community hos-
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