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South Coast Medical Center buyer announced

State Attorney General must approve sale to St. Joseph Health System

November 15, 2008|By Barbara Diamond

High ranking city officials gave their support Friday to the bid by St. Joseph Health System to buy South Coast Medical Center in Laguna Beach.

The City Council will be updated at Tuesday’s meeting on the proposed sale to St. Joseph, the choice of Adventist Health to take over the financially ailing medical center. The state Attorney General must approve the sale to St. Joseph, which also owns Mission Hospital in Mission Viejo.

“Many people said it would be impossible to keep our community hospital,” said Mayor Pro Tem Cheryl Kinsman, who served with Mayor Jane Egly and Assistant City Manager John Pietig on the City Council’s hospital sub-committee.

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“Despite the doubts, Jane, John and I kept working with the hospital and other health care providers until we were fortunate enough to get this offer from St. Joseph.”

St. Joseph’s is a not-for profit, California-based Catholic heath system with 14 acute-care facilities in the state, Texas and New Mexico.

The goal of Adventist Health, according to the announcement released Friday, was to make the transition to the new owner a seamless process for employees, physicians and patients.

“Personally, I would like to see St. Joseph retain the services of Elizabeth Pearson who headed the SCMC Foundation, and CEO Bruce Christian, whose experience and familiarly with Laguna would be invaluable,” Kinsman said.

St. Joseph’s bid meets most of, if not all of the city’s criteria for a new owner that the council agreed on at the Nov. 4 meeting and forwarded to Adventist officials, Egly said. Pearson did not attend the meeting or participate in any of the numerous closed sessions the council has held on the hospital sale because of her position at the medical center.

In all, the council approved nine recommendations:

1. Provide the community with a long-term commitment to maintain a general, acute car hospital with basic emergency medical services twenty-four hours a day, seven days a week.

“This is the key condition,” Pietig said. “These services are essential to the community and to minimize the distance public safety personnel must travel when conducting emergency transports.” The city also would like to see radiation therapy, not presently provided.

Also recommended:

2. The new owner should demonstrate the commitment and financial ability to purchase the assets, modernize the hospital and address seismic improvements when they are required.

3. Continue to operate as a not-for profit hospital.

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