HomeMy WebLinkAboutMINUTES - 06211994 - S.1 To: ' BOARD OF SUPERVISORS
FROM: SUPERVISOR JEFF SMITH Contra
Costa
DATE: June 21, 1994 County
SUBJECT: REQUEST AUTHORIZATION TO DO A MANAGEMENT AUDIT OF MT. DIABLO HOSPITAL AND ITS
CORPORATIONS
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
1) DIRECT Health Services Director and County Administrator to work with the administration. of the
Mt. Diablo District in order to provide a management audit of the district to the Board of Supervisors as
soon as possible.
2) DIRECT the Health Services Director and the County Administrator to develop strategies and
suggestions which will assure that the Mt. Diablo Hospital District will remain viable, financially sound,
and will avoid operational pitfalls which have caused the current problems at Los Medanos Medical Center.
3) If the administration at Mt. Diablo Hospital is unwilling or unable to participate in this process,
AUTHORIZE the Health Services Director and County Administrator to forward concerns about the
management of the District and supportive background information to the Auditor General of California and
other appropriate agencies.
BACKGROUND:
With the failure of Los Medano.s Hospital, residents in other hospital districts have expressed concerns about the
long term financial and programmatic viability of their hospitals. Specifically, it has come to light that Mt. Diablo
Hospital has ongoing severe operational losses which are anticipated to be as high as $3.6 million this fiscal year.
This ongoing operational loss, coupled with some recent very significant one time losses, has apparently caused
a significant reduction in District financial reserves. Despite the sizable reserves, such a downward trend is a
significant concern unless it cari be rapidly reversed.
Additionally, Mt. Diablo Hospital District has created numerous corporations in order to hold assets and generate
revenue which currently keeps ;the District financially viable. Concern has been raised that this move toward
privatization of the assets of the District may contravene the intent and letter of State law and effectively removes
the operations and governance of the District from its constituents.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND I O OARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON june 21 , 1994 APPROVED AS RECOMMENDED X OTHER
For speakers; see Addendum.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES:I , I I , IV, 7 NOES: III* AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
*Supervisor Bishop voted no expres- ATTESTED June 21 , 1994
sing concern with the amount ' of
PHIL BATCHELOR,CLERK OF THE BOARD OF
staff time that may be involved. SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
Contact Person:
CC: Supervisor Jeff Smith
Health Services Director
ADDENDUM
The following persons spoke on this item:
Grace Ellis; 1718 Via del Verdes, Concord; and
Phyllis Roff, (no address given) , Walnut Creek.