Light attendance at hospital Adventist affiliation hearings --Public seeks clarity on long-term hospital lease

At the Tehachapi Valley Healthcare District public hearings on the proposed affiliation with Adventist Health July 13-16, 2015, several speakers asked if the district would have any recourse if the 25-to 30-year lease goes sour (see quotes above).

District CE0 Eugene Suksi described the future relationship between the district and Adventist Health –should the public vote approval on Nov. 3, 2015 – as that of “landlord and tenant.” The district would retain ownership of all its physical assets, including the new hospital, three clinics and the old hospital, while Adventist would operate and maintain them.

Suksi said that performance criteria are expected from both sides. Intense negotiations between the parties are nearing completion.

Public speaker Billie Dreyfuss, who was concerned about a possible future lack of services for women at the hospital, said she would like to see a written agreement with the local board, as a secular organization, to decide what medical procedures will be provided at the new hospital.

The affiliation proposal, capsuled in a sentence to be crafted by the board on July 21, will go to the public for approval on the Nov. 3, 2015 ballot, as it involves more than 50 percent of the district’s physical assets. The measure requires a simple majority of 50 percent plus one to pass. Residents who live within the boundaries of the district are eligible to vote on the measure.

A total of 13 public speakers attended the four hearings, held at the district conference room in an old house at 109 West E Street next to the hospital. On the second night, no one from the public appeared, and board president Mike Nixon paused the meeting for 10 minutes to see if anyone arrived late.

Suksi opened each hearing – except the one with no public in attendance – with a short presentation on the proposed long-term lease of the new hospital facility to Adventist Health.

Suksi’s main points:

– The full cost of the new hospital is estimated at $91.7 million.

– The district raised $67.4 million from General Obligation Bonds and district reserves.

– In response to the district’s Request for Proposal for an affiliation partner, Adventist Health proposed a 30-year pre-paid lease of $25 million, which would enable the hospital to be completed and fully equipped.

– The board, with the help of an independent third party, selected Adventist Health as the most suitable affiliate.

– Adventist Health would take over the district’s physical assets at the initiation of the long-term lease on Jan. 1, 2016.

–The district cannot campaign for the ballot measure.