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Thursday, June 27, 2013

Eden Township Healthcare District Ordered To Pay Sutter Health $17 Million In Damages

SAN LEANDRO HOSPITAL | An arbitrator ordered the Eden Township Healthcare District to pay Sutter Health over $17 million in damages to compensate for losses the health care provider incurred during a two-year span while ownership of San Leandro Hospital was in legal dispute.

The District filed a lawsuit in 2010 in order to block Sutter's option to purchase San Leandro Hospital and convert it to an acute rehabilitation facility. The lawsuit was seen as a critical step in keeping the hospital and its emergency room open for the next two years. An Alameda County Superior Court judge ultimately sided with Sutter and awarded it the hospital last year.

The gambit could have come at great cost to the District, however, Sutter will allow for the payment to be allocated towards operations at San Leandro Hospital, said Carole Rogers, the chair of the Eden Township Healthcare District Board of Directors. Last week, the District approved $20 million in subsidies to fund operations of the emergency room for one year.

Sutter had initially sought over $28 million in damages it said resulted in operating losses at San Leandro Hospital from April 2010 to April 2012. Although the District offered $11 million in damages, the arbitrator nearly split the difference.

In the past few months, movement on the future of San Leandro Hospital has come at feverish pace. In May Sutter offered to transfer title of the facility to Alameda Health Systems along with $22 million in subsidies. A letter of intent was subsequently signed allowing for the hospital to maintain the status quo with emergency room and without job losses.

18 comments :

Wonderful news, as this will help keep the Hospital open.

So good to hear that the damages award will be used to ensure the continuation of full ER and acute care services at San Leandro Hospital. That's money well spent.

Ummm Does the district have this kind of cash? or is it double counting? Is this $17 million considered part of the District $20 million? Or is this in addition to the $ 20 million?

There is confusion on money aspect of what just occurred. First, Sutter agreed to put up $20 million to ACMC for first year's operation of the facility; this amount is to be deducted by $2 million a month as long a final agreement not done; then, the district has agreed to put up $20 million, but will Sutter's award of $17 million be deducted from this amount? I am advised that no matter how you cut it, The ER will probably be gone in two years-true? Who knows, but confusion needs to be sorted out. could have been settled in 2009 for far less money than now discussed. Tony Santos

The $17 million in damages is part of the $20 million the Township approved for SLH last week. It's part of Sutter's new good-guy policy.

The issue of the ER being gone in 2 years is a concern and something to keep an eye on going forward. As I've said before, the community can rattle the Board of Supervisors for money if that time comes. Before, good luck with Sutter listening.

Sutter pledged $22 million to be used starting July 1 and will draw down the losses each month until the County takes over. Hardly a gift.

I can't wait to see San Leandro Hospital financial statements showing our hospital can make a profit or at least break even!

enjoy your time in the sun, you're the "Pep Boys" store when Kaiser opens...that place will be "bleeding red" if it doesn't trim the sails.

Kaiser is not opening a "new" hospital - it is just replacing the one in Hayward. Same patients, same doctors, just a new road to travel.

Sutter got a taxpayer owned hospital in San Leandro for free. If I remember right the Eden district paid $35 million of our money, Sutter ran it into the ground, won a bogus lawsuit and now claims it is "donating" the hospital to the County. It will probably show up on their corporate tax return as a write off.

Sutter may have gotten hospital for free, but Sutter does have over $60 million of equipment on site which is to go to ACMC at transfer time, whenever that is. An interesting point to be made; my cousin refused to be take to SL recently and preferred to go to Eden in Castro Valley where he still is; my wife's close friend also refused to be taken to SL as she felt care was not adequate at SL hospital and like my cousin, she is at EDen; this does not speak well for San Leandro Hospital. not a great reputation. Tony Santos

The equipment at San Leandro Hospital is very very old and not worth $60 million, so your statement, Tony is very wrong. All the equipment needs to be replaced since it is so out of date. Alameda Health System will have to spend a great deal of money on equipment to make it state of the art! Hopefully someone will we watching their corporate tax return, for there shouldn't be any write off. All the equipment is at its end of life and worth nothing!

So you're saying AHS will have to pony up alot more than the tens of millions needed to keep the ER open? How will AHS come up with all this money?

Sutter Health posted their official appraisal of San Leandro Hospital as part of the lawsuit against the District. Lock, stock and barrel - including all assets, inventory, real estate, AR & AP, depreciation at $35 million It is searchable on line.

If we want to keep our hospitals open and with ER we will need to think about a parcel tax that will give the community what it wants! There needs to be massive community education on how the public should use these services, for most visits to the ER should not occur. We need clinics and Urgent care facilities set up to take care of the non-emergency issues. What happened to the clinics in the Fire Stations that were proposesd???

Wilma got 22 mil from sutter, the 17 mil sutter won from ETHD in the lawsuit will also go to SL hosp per agreement with sutter, we can expect at least another 3 mil from ETHD( they pledged 20 mil), Al. Co. 3 mil, SL 3 mil--that's a total of at least 48 mil. Wright Lassiter claims he can make it profitable by the end of 3 years, maybe 2. The 4th floor will be dedicated to rehab which is very profitable. San leandro hospital will be saved. I also think a parcel tax is possible if need be.

The Fire Station health care portals appear to be on their way. The County Supervisors and the City of Hayward will consider approving funding for the first, in South Hayward, sometime this year. The area is already horrendously underserved medically, and with Kaiser pulling its ER services from South Hayward, the portal will fill a desperate need. Let's make sure the County and City do the right thing.

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