HomeMy WebLinkAboutMINUTES - 04041989 - T.3 T. 3
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on _April 4, 1989 by the following vote:
AYES: Supervisors Powers, Schroder, McPeak, Torlakson
NOES: None
ABSENT: Supervisor Fanden
ABSTAIN: None
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SUBJECT: Workshop on Proposed Financial Model for the
Replacement of Merrithew Memorial Hospital
Phil Batchelor, County Administrator, referred to the workshop
held on January 31, 1989, which reviewed the findings of the Arthur
Young report and confirmed the need to replace the Merrithew
Memorial Hospital facility. He advised that staff has been working
with consultants of the firm, Lewin/ICF, to define the financial
model on which to base a decision relative to the size of the new
hospital and cost. He spoke on the various issues associated with
developing a financial model which included a review of the demo-
graphics, market sensitivity, and trends in place regarding the use
of public hospitals. In order to make projections on future needs,
the County Administrator noted that consideration was also given to
other factors such as competition between hospitals, legislative
actions in Washington and resulting impact on the County Medi-Cal
program, and the number of beds ( 190 to 234) that would be required
based on current patient census figures. Mr. Batchelor advised
that another workshop will be held on April 25 , 1989, at 10: 30
a.m. , to discuss financing mechanisms available to construct a new
facility based on assumptions presented this day.
Mark Finucane, Health Services Director, introduced the
members of the Lewin/ICF consulting firm who participated in the
development of the financial model. The consultants ' approach to
the problem consisted of an analysis of the following elements
limited in scope to patient population requiring acute medical care
and patient population requiring psychiatric care:
1. Examined recent history of Merrithew volumes,
population trends, and changes in use of hospitals by
various population groups;
2. Made projections using trends and varying assumptions
based on the Hospital' s expected ability to compete
with a new facility;
3 . Critically reviewed the Hospital' s fiscal planning
assumptions;
4. Projected a range of county financial impacts based on
various levels of market success and various new
hospital sizes; and
5. Projected additional patient volumes if Medi-Cal treatment
became more concentrated at Merrithew.
Based on the assumptions presented, Supervisor McPeak re-
quested the County Administrator to provide a written report
presenting a conservative scenario for the replacement facility and
a worse case scenario as well.
In response to an inquiry of Supervisor McPeak, Mr. Batchelor
advised that staff is currently reviewing the qualifications of
architects for this project as well as financial consultants
including bond underwriters.
Following discussion on the issues presented, the Board
ACCEPTED the presentation on the proposed financial model for the
replacement of Merrithew Memorial Hospital.
1
cc: County Administrator 1 hereby certify that this Is a true and oorrect copy of
Health Services Director an action taken and entered on the minutes of the
Grand Jury Board of Supervisors on the date shown.
ATTESTED: /-�t_'t____
PHIL BAT HELOR,Clerk of the Board
of Supervisors and County Administrator
By �1_ � a=2LDeputy