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Bidder is selected

State attorney general must approve hospital sale to St. Joseph Health System, a Catholic entity.

November 20, 2008|By Barbara Diamond

High-ranking city officials gave their support Nov. 14 to the bid by St. Joseph Health System to buy South Coast 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 subcommittee.

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

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

The goal of Adventist Health, according to the announcement released last week, 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 chief executive 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-care hospital with basic emergency medical services 24 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.

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.

4. Have substantial experience operating a full-service hospital and an emergency room.

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