Partnership With Eden
|
On July 1, 2004, Eden Medical Center welcomed San Leandro Hospital as part of the Eden and Sutter Health family. The partnership has been beneficial for the community, for our patients and physicians, and has brought stability of health services and access to health services in Alameda County.
Below is more information about our partnership.
|
News Release |
Background Information |
Frequently Asked Questions |
|
News Release
|
Eden Township Healthcare District Purchases San Leandro Hospital
Castro Valley, Calif. (May 26, 2004) – The Eden Township Healthcare District announced today that it will purchase San Leandro Hospital from Triad Hospitals, Inc. (NYSE: TRI). The District, upon approval of the purchase agreement, will lease the hospital to Eden Medical Center, an affiliate of the not-for-profit Sutter Health network.
Triad, an investor-owned hospital company based in Plano, TX, has owned and operated San Leandro Hospital since 1999. San Leandro Hospital is the only Triad hospital in California. The sale comes at a time when hospitals across the state are facing uncertain futures due to declining reimbursement for services, soaring workers compensation costs, state-mandated nurse staffing ratios and seismic safety upgrades.
"Over the past few years, while remaining true to its decades-long social mission, San Leandro Hospital has achieved a positive cash flow, increased volumes and successfully introduced new programs and services. At the same time, we’ve recognized that hospitals in California face significant – and unique – challenges," said Chris Holden, Triad division president. "Teaming with the Eden Township Healthcare District creates additional health care synergies for San Leandro and surrounding communities."
The purchase agreement, which is pending approval by the District board, calls for Eden Medical Center to operate San Leandro Hospital with few changes in acute care and emergency services for at least three years. Both hospitals will operate independently but collaboratively, governed by a single board of directors. As part of Eden Medical Center, San Leandro Hospital will also be under the umbrella of the not-for-profit Sutter Health network.
The employees of San Leandro Hospital will be offered employment to continue working in their same positions at San Leandro Hospital.
"Eden and San Leandro Hospital share a strong tradition of serving the community, providing quality patient care and attracting talented employees and physicians," said Dr. Harry Dvorsky, chair of the District Board and member of the medical staffs of both Eden and San Leandro hospitals. "Working together in these challenging times makes sense. Together, we can ensure access to quality health services in the community for many generations."
"Eden Medical Center has served the San Leandro community for 50 years, and we believe that, with San Leandro Hospital, we have the opportunity to involve both community hospitals in regional planning," said George Bischalaney, president and chief executive officer of Eden Medical Center. "This is the right decision for the community and for the hospitals, employees and physicians as we plan for our future."
Eden is planning a complete redesign of its campus and, with Sutter Health, is embarking on a $300 million project to develop a new outpatient surgery and medical office building and rebuild the hospital. The purchase of San Leandro Hospital by the District brings greater flexibility to these plans and enables the hospitals to maintain important health care services in both communities without taxpayer support. This issue is of particular importance to local residents due to the recent passage of Measure A, a half-cent sales tax increase in Alameda County to support Alameda County Medical Center and other emergency and public health services.
"This is wonderful news. I am very pleased that Eden Township Healthcare District has taken this opportunity to stabilize health services in this region and bring local ownership to San Leandro Hospital," said Alameda County Supervisor Nate Miley, who represents the Eden District (District 4). "This partnership is good for our local community, for the employees and physicians, and for the patients who need continued access to health care in this area."
|
|
|
Back to top
|
Background Information
|
Eden Medical Center is facing a challenging decision to answer one crucial question: how will Eden continue to provide health care services for our communities for many more generations? The answer to that question is not simple.
Right in Alameda County, hospitals are struggling to continue their missions in the face of unprecedented challenges. Some have turned to taxpayer support just to keep their doors open, and others are teetering on the brink of closure. In 1998, Eden affiliated with Sutter Health, a not-for-profit health system in Northern California. This decision was the right choice for Eden, enabling us to preserve vital community services and to invest in the latest in clinical and information technologies, and to introduce innovative patient safety technology. Today, we are planning for the rebuilding of our hospital and the development of new programs that will bring even more state-of-the-art services to our communities.
The Eden Township Healthcare District Board of Directors has an opportunity to protect and preserve services in and for San Leandro by purchasing San Leandro Hospital from Triad Hospitals, Inc., an investor-owned health system based in Texas. The District will lease San Leandro Hospital to Eden, which will oversee and operate the San Leandro campus as a part of the medical center. By bringing local ownership to San Leandro Hospital, we will continue the tradition of providing quality and accessible health care services for San Leandro residents in their community, and Eden and San Leandro can better plan for the future in the best interests of the community, patients, physicians and employees.
This information is provided to help you understand the position and direction of Eden Medical Center and San Leandro Hospital, and to answer frequently asked questions. If you have further questions or concerns, please contact us at (510) 727-2720.
|
|
|
Back to top
|
Frequently Asked Questions
|
Why is the Eden Township Healthcare District purchasing San Leandro Hospital?
The Eden Township Healthcare District (ETHD) and Triad Hospitals have taken this step to ensure high quality, accessible health care services for San Leandro residents. Eden Medical Center and San Leandro Hospital both share a long tradition of serving the health care needs of the community. In fact, the residents of San Leandro helped support the original building of Eden Hospital in the early 1950s and continue to be represented by membership on the ETHD and Eden Medical Center Boards of Directors. It is a logical extension of that involvement that the ownership and operations of San Leandro Hospital return to its roots of local control. With the purchase of San Leandro Hospital, the District has the opportunity to be a more integral part of the future health care planning for services in and for San Leandro.
In the past two years within Alameda County, hospitals have faced significant challenges. Both Alameda Hospital and Alameda County Medical Center turned to taxpayers for financial support. According to published reports, the parent company of St. Rose Hospital plans to divest of St. Rose this year, creating further uncertainty in the region. Moreover, several Alameda County hospitals – including Eden – must rebuild to meet stringent state seismic safety standards. To ensure the future viability of both Eden and San Leandro hospitals, the ETHD Board has determined that this partnership is the best solution and will bring long-term stability to hospital services in central Alameda County, without taxing its residents. This new affiliation holds significant promise as San Leandro Hospital joins ETHD, Eden Medical Center and Sutter Health to plan for the continuation and improvement of health care services in central and southern Alameda County.
The Board of Directors has identified several objectives in this process:
|
Continuation of the District’s mission to preserve and enhance the health of the community by investing resources in health care services that meet the needs of patients and the community.
Continued access to quality health services in and for San Leandro residents.
Continued regional health care planning for the replacement of Eden Medical Center.
Extension of the District’s public accountability to San Leandro Hospital through a governance structure that includes the publicly-elected members of the District Board working with community members.
Commitment to work closely with and within the San Leandro community of health care providers.
|
Who is buying San Leandro Hospital?
The Eden Township Healthcare District is acquiring San Leandro Hospital from Triad Hospitals, Inc. The District, upon final approval of the purchase agreement, will immediately lease San Leandro Hospital to Eden Medical Center, EMC will operate San Leandro Hospital. San Leandro Hospital will come under the governance and administration of Eden Medical Center, which has served San Leandro and surrounding communities for 50 years. As a result, San Leandro Hospital will join Eden as an affiliate of Sutter Health, a not-for-profit network of hospitals and affiliated medical groups in Northern California.
When is the sale final?
The agreement between Eden Township Healthcare District and Triad calls for the transaction to be completed and ownership of San Leandro Hospital to be transferred effective June 30, 2004, subject to the issuance of a new license by the Department of Health Services. The period prior to June 30 is a transition period during which change in ownership notification and other similar business issues will take place.
What does the sale include?
The sale includes all applicable operating assets owned by Triad in San Leandro, including San Leandro Hospital, the medical office building on the campus, the former Ford Store buildings, the property used for employee parking, Triad’s interest in the ambulatory surgery center is included as well, but is subject to approval of the existing partners.
What will happen to San Leandro Hospital?
Under the terms of the sale and lease agreements, Eden Medical Center will operate San Leandro Hospital with few changes in acute care and emergency services for at least three years. The physicians, employees and volunteers will work together to continue to provide care for the San Leandro community.
After the three years, will San Leandro Hospital be closed?
No, there are no plans to close San Leandro Hospital. Eden Medical Center is planning for the complete rebuilding of its acute care hospital and campus, and the addition of San Leandro Hospital allows more flexibility in planning and avoiding the interruption of services.
Will San Leandro Hospital still have its own board?
No. The hospital will be governed by the 11-member board of Eden Medical Center. This board includes the five publicly-elected members of the ETHD board, representing Castro Valley, San Leandro, Hayward and San Lorenzo: Dr. Francisco Rico, Susan Forsyth, R.N., Dr. Rajendra Ratnesar, Suzanne Barba and Dr. Harry Dvorsky. The Board also includes five community members appointed by Sutter Health who live within the District. These members include David Davini (resident and business owner in San Leandro), Kent Myers (former San Leandro City Council member and resident of San Leandro), Dr. Francis Johnson (on the medical staff of Eden and San Leandro), Sally Trautwein (former trustee with Castro Valley Unified School District), and Joel Garcia (executive director of Tiburcio Vasquez Health Clinic). The eleventh member of the board is the CEO of Eden Medical Center, George Bischalaney.
Does the ETHD plan to make major capital investments at the San Leandro Hospital facility?
Eden Medical Center has identified some immediate capital needs at San Leandro Hospital that will require funding during the first year. Thereafter, San Leandro Hospital will receive an annual allocation of capital from Sutter Health, just as Eden Medical Center and other affiliates do now.
How can we be sure that no changes in care will occur for three years?
There is agreement among all the parties that the acute care and basic emergency services will remain intact during this time.
What does the District’s purchase of San Leandro Hospital mean for patients?
The purchase of San Leandro Hospital by the District means that there is continued support for healthcare services in San Leandro. The District’s role as a part of the governing body of Eden Medical Center will now extend to San Leandro Hospital and the services it provides. San Leandro Hospital will now become part of a broad regional planning process with Eden Medical Center. We believe that the sale of San Leandro Hospital to a local, community-based organization serves the best interests of the community and patients.
Will patients have to change physicians?
No. The purchase of SLH by the District will not change the relationship between physicians and patients.
What does the District’s purchase of San Leandro Hospital mean for physicians?
A vast majority of San Leandro Hospital medical staff members also are members of the Eden Medical Center medical staff. We will help expedite the membership process for all other eligible San Leandro Hospital medical staff members who wish to apply for membership on the Eden Medical Center medical staff.
What does the purchase mean for physicians in terms of participation in health plans?
Physician’s contract independently from the hospital with health plans. If there are health plans with whom Eden has contracts, but San Leandro does not, it may now be possible San Leandro physicians to refer those patients to San Leandro Hospital for services.
What about volunteers who currently serve at San Leandro Hospital? Will they be required to join the Eden Medical Center Auxiliary?
The San Leandro Hospital Auxiliary is a separate legal entity from San Leandro Hospital. The Auxiliary is self-governing and is run by an Executive Board, the members of whom are elected by the San Leandro Hospital Auxiliary membership. Eden Medical Center’s Auxiliary operates in the same manner. The two organizations are not included in this transaction.
Will San Leandro Hospital employees lose their seniority?
Eden Medical Center will recognize the prior service of San Leandro Hospital employees accepting employment for purposes of wages, satisfying any applicable waiting periods for benefits or vesting. Seniority within department’s or work clusters will continue to be recognized within San Leandro Hospital as they are now.
What about vacation and sick leave that San Leandro Hospital employees have accrued?
San Leandro Hospital employees will retain their earned vacation time. In addition, unused sick time will be carried forward and allowed to be used per the existing policies covering all EMC employees.
Will SLH employees become ETHD, Eden Medical Center or Sutter Health employees?
San Leandro Hospital employees will become employees of Eden Medical Center.
San Leandro Hospital has been owned by a for-profit hospital company. Will San Leandro Hospital's tax status change with the sale?
Yes. Eden Medical Center is a not-for-profit organization. With the sale, San Leandro Hospital will become not-for-profit hospital as well.
What is the difference between a for-profit hospital and a not-for-profit hospital?
Both hospitals operate to meet health needs of the community they serve. The difference lies in the use of the income from operations. For-profit, or investor-owned, hospitals return a portion of their profits to their investors. Not-for-profit hospitals reinvest earned income in new programs and services, equipment and technology, and employee salaries and benefits. No income earned in not-for-profit organizations may accrue for the benefit of an individual.
|
|
|
Back to top
|
|
