The board of the Sequoia Healthcare District is still working out final details in the sweeping agreement to rebuild the 57-year-old Sequoia Hospital to meet state earthquake-safety standards, and turn over its governance to Catholic Healthcare West.
A final vote to launch the $240 million project is expected at the board’s next meeting, to be scheduled soon. At a study meeting Nov. 7, board chair Kathleen Kane promised to give 72 hours’ notice of the meeting.
The board has been fine-tuning the 33-page agreement announced Aug. 30 and hammered out among the district, Catholic Healthcare West (CHW), and Sequoia Heath Services (SHS), the legal entity that controls the hospital.
The proposed agreement calls for a three-way split of the cost of rebuilding and expanding the hospital. The health-care district, CHW, and SHS would each put up $75 million. The other $15 million would come from private funds to be raised by the Sequoia Hospital Foundation.
Under the agreement, the district would give up its five seats on the 10-seat governing board when the hospital (SHS) merges with CHW on Jan. 1, 2008. CHW will appoint a new community board of 10 to 15 members. Sequoia will continue to be run as a community hospital by CHW for 40 years after completion of the new hospital.
At the end of the study session, there was only one speaker. Former district board member and Redwood City Mayor Brent Britschgi said, “I think we’re going in the right direction.”
League questions
On Nov. 6, the League of Women Voters of South San Mateo County circulated a letter questioning the proposal to provide $75 million for rebuilding Sequoia Hospital and permanently selling all interests to CHW. It asked for more transparency, more community oversight, and an election.
“The League is concerned that public funds are to be spent on improving a hospital while a private entity assumes total control without unbiased local oversight,” said League President Jamie Shepard in an e-mail.
On Nov. 7, members of the board said they had not seen the letter. Director Malcolm MacNaughton noted that an election is not legally required. The election in 1996 approving transfer of the hospital to CHW covered the present actions, he said.
Ms. Kane noted the board has been doing outreach to the community. It held two public forums (poorly attended), placed newspaper ads, sent a letter to all residents, and posted all information on its Web site. “I spent a day at a street fair,” she said.
Ms. Kane also noted that the board was not giving the money to rebuild the hospital; it was investing it. The 40-year term of the agreement represents the length of time for the district to get back its investment, she said. The district contribution also includes transfer of a medical office building to CHW.
Even under CHW ownership, Sequoia will continue as a non-religious, community hospital, under the agreement. “We insisted on that,” Ms. Kane said.
Other concerns
Another major concern in rebuilding Sequoia Hospital is the ability to recruit and maintain physicians in an increasingly competitive health care environment.
While the award-winning hospital ranks in the top 5 percent nationally, it also faces tough competition if the Palo Alto Medical Foundation builds a new hospital in San Carlos.
Ms. Kane said the financial studies for rebuilding Sequoia Hospital took that possibility into account. “Sequoia still will run a profit even with PAMF, possibly not as high a profit.”
Hospital President Glenna Vaskelis discussed the hospital’s program to keep its physicians happy. It is reactivating its Physician Advisory Committee, and has prepared a seven-page paper on “Physician Engagement Strategies.”
“Physicians are independent,” she said. “We should provide the best place for physicians to come.”
Supervisor Jerry Hill has another concern about the new hospital — and the present one: how to meet the health needs of the uninsured and those who don’t have enough money to pay for health care.
“This is a key issue,” he said. “Building a community hospital that only insured residents can go to doesn’t meet the needs of thousands of uninsured residents.”
Mr. Hill said he hopes to work with the board to solve these problems. “My goal is to work things out for the future,” he said.
Ms. Kane agreed that serving the uninsured is an important issue, but not part of the present negotiations. “It’s kind of an orange in an apple basket,” she said. “I’m willing to discuss the uninsured with him.”
INFORMATION
For information, call the Sequoia Healthcare District at 482-6115, or go to sequoiahealthcaredistrict.com; or call Sequoia Hospital at 369-5811, or go to sequoiahospital.org.
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