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Tuesday, January 17, 2012

St. Rose Asks Eden Township To Lower Interest Rate On $3 Million Loan

Jan. 17, 2012 | St. Rose Hospital's financial woes are continuing. The crippled Hayward hospital is asking this week for more favorable terms on its recent $3 million loan from the Eden Township Healthcare District. Without it, it may not be able to continue making payments, according to a District report.


The loan was given last August to alleve cash flow problems it encountered last summer and exacerbated by a new computer system glitch. Its interest rate was initially set at 8.25 percent, according to the District, but St. Rose is asking to cut it in half.

In a staff report posted this week, St. Rose CEO Michael Mahoney wants to reduce the interest rate to 3.25 percent to better help the struggling facility get through the winter months. Under the current agreement, St. Rose pays a weekly payment of $200,000 through February and $167,000 through the end of March.

The request adds additional question about the sustainability of the facility and whether the District's recent interest in acquiring it makes economic sense. The District lost $2.3 million last year, according to its financial statements.

In many ways, the proposed merger of the District and St. Rose appears to be the impetus for reducing the terms of the loan. District CEO Dev Mahadevan, in a letter to board members recommending the adjustment, said the change would allow St. Rose "to reduce its expenses and in light of the proposed acquisition that is currently being investigated and the potential future relationship."

In early December, it was revealed that St. Rose was in default for $2.3 million in unpaid loan payments. The board approved a payment schedule proposed by Mahoney affording the hospital time to fix its persistent cash flow problems.

Despite the spate of financial problems at St. Rose, Alameda County Supervisor Nadia Lockyer and other county health officials have urged the District to move quickly to merge with the hospital.

Part of the long-range plan for both St. Rose and neighboring San Leandro Hospital is to utilize a larger economy of scale for procuring a larger portion of federal and state funds to offset continuing losses and services at each facility.

19 comments :

the real reason that the township is interested in st. Rose is that, it is very likely (though not for sure) that the district will lose SLH..... Soon. what is the Eden township without a medical center??? A bunch of doctors sitting around a table with no control of anything in their district. the answer? jump off the sinking ship (SLH) and find a new ride!!

St. Rose is a sinking ship. Who cares about the District? LAFCO will just step in, dissolve the Disrict and hand their assets over to who?

Sutter via Eden Medical Center. The district has wasted millions. They should be dissolved and sued.

Yeah and just close St. Rose Hospital too. Let's just let Sutter take care of everyone. And make everyone else go to Highland/Oakland. This hospital has lots of excess beds, staff and resources to take it all on.

District sued for what? Trying to keep San Leandro Hospital open despite Goliath raising the sword to slash health care for anyone without the ability to pay? Or patients who could be within the nearest emergency room with a stroke or heart attack with minutes to spare - divert them to Valley Memorial in Livermore? (That could be you!) Or Eden making sure that private insured patients come to them and let the County & their bloody hands just let them die on the streets? In this economy? Do you know that non profit Sutter canceled their Medi-Cal contract years ago? So they only admit emergency patients with Meed-Cal emergencies. Keep Sutter's feet to the fire!

Wow! Lot's of comments from Sutter Health administration of course. This administrative top heavy company takes great delight in bad mouthing the community, other hospitals, and even it's own employees. All the while, they post obscene profits at the public's expense. They take your money, then THEY tell you how it's going to be.
That's "community based medicine?"
NOT!!!
Sutter health, just go away, since you lack the ability to make the right decisions.
Mark Phillips, Castro Valley

As a history buff, I am reminded of the "Robber Barons" of over a century ago. Sutter Health appears to be low on morality, and hell bent on destroying the middle and lower classes. All the while they reap in record breaking profits for the top few. I can see why the Occupy America people have their sights set on Sutter Health.
I say down with corporate greed. Let's boycott immoral companies by not spending our healthcare dollars there when possible. Send them the way of Tenet Healthcare!
Anonymous fearing retribution from Sutter Health

All this talk about dissolving or letting hospitals and or health care districts close is just nonsense. In Alameda County there are 1.5 million people, 17.6% or 265,398 of which are under 5years of age or over 64 years of age. These are the people that need hospitals the most. There are 10 hospitals that are non member hospitals (not Kaiser) that are caring for this populous. Does it make sense to let any of them close? Why don’t we think of a way to make them work instead of throwing in the towel? Any idiot could do that, then later regret it when they are the ones looking for a bed to lay in when they are sick or worse yet dying.

All of you bed number or population number crunchers are missing the point. It's not the number of hospitals or beds -- it's about quality and neither St Rose or San Leandro are good quality. Just the opposite. It's time to advocate for quality healthcare. Just look at any objective website and you'll realize that you are being fooled by this logic. And now that I've disagreed with you please call me stupid or an idiot or faggot.

It won't change the facts.

You can have the best quality healthcare in the world but when your down to just 5 hospitals treating 1.5 million people it wont amount to much. Think of it, if your having a heart attack and the nearest hospital is 20 miles away that quality hospital will be wrapping up your dead body.

Come on how many miles is Eden from SLH? It's like 5 miles. Healthcare is more then just the ER.

Think of the millions the District has wasted that could have made SLH a quality place.

What we've got here are employees and unions of SLH only interested in saving their jobs. Not lives. People who have insurance will always have better healthcare and will go to better hospitals. San Leandro is not one of them.

The new Eden/Sutter Medical Center is smaller then the old hospital. Why? Because less beds are needed in the EastBay. Sick people with insurance are going to the City to UCSF or Stanford. Not to San Leandro or St. Rose.

What about alta bates summit?? This medical center loses literally 10 times more money per year than SLH. Not only does sutter not mind.... They are currently constructing a new ABSMC as we speak to ensure they lose money for years to come!!
Why is sutter only picking on San Leandro but not Oakland?

Alta Bates Summit Medical center (oakland) is to Alta Bates (berkley) as SLH is to Eden. They're joined at the him under the sutter umbrella. why is no one saying "screw ABSMC!! We have the berkley campus 10 minutes away!"?

I have been to San Leandro Hospital Emergency , Eden Hospital Emergency , Kaiser Oakland Emergency
and St Rose Hospital Emergency . With my own experience the worst is St Rose Emergency next to Kaiser Hospital in Oakland. From Hayward, I would
rather go to San Leandro Hospital.

After 4 ER visits it's a miracle you are still alive. You go boy or girl.

Sounds like more Sutter management garbage. You always try to turn the focus away from community and patient needs. Oh, the evil nurses are out to get ya, huh?
Really.
Really.
Try looking in the mirror Sutter Boy. You're lacking a soul!

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