Adventist assailed over asset-taking

Adding to a chorus of critics, former Laguna Beach Mayor Paul Freeman is accusing Adventist Health of unethically — if not illegally — acquiring the assets of the South Coast Medical Center Foundation and pressuring board members to go along.

Freeman made his accusation public at Tuesday’s City Council meeting, echoing concerns of other community members.

“I am here to lend my voice to concerns reported in local newspapers about the disposition of assets owned by the recently dissolved local hospital foundation,” Freeman said.

Adventist Health, which announced plans to sell the medical center in September, dissolved the foundation Nov. 15 and announced the takeover of foundation assets. Foundation board member Susan Morrison publicly denounced the action at the Nov. 21 council meeting.

The Foundation assets included the medical office building adjacent to the hospital, which the Foundation purchased in 2002 with a $1.9 million down payment.

Other assets include individual donations, including some that were restricted for specific purposes, according to Morrison.

Adventist officials warned that such criticisms could delay or even halt the hospital’s sale, which Adventist is currently negotiating with St. Joseph’s Health System.

“It would be a shame if some public statements, although they may mean well, have the unintended consequences of delaying or endangering the transfer of South Coast Medical Center to a qualified buyer,” Adventist spokeswoman Alicia Gonzales said Wednesday.

“We appreciate the engagement of the community and the Laguna Beach City Council thus far in the South Coast Medical Center sale process; however, many of the current rumors and hearsay simply are not accurate,” she said.

Adventist’s statements have not assuaged former board members such as Morrison.

“I feel more strongly than ever,” Morrison said Wednesday by telephone from Austria. “My position has actually extended beyond South Coast Medical Center. I want the [state] attorney general to investigate all Adventist Health practices at all of their hospitals.”

The assets referred to by Freeman and Morrison include the Medical Center West office building and the adjacent parking lot, bought by the foundation in 2002.

The down payment was made with funds donated for restricted use.

Gonzalez said the community will have ample opportunity to voice concerns to the attorney general.