Established in 1867, Kern County ran the public hospital for more than a century. Recently, KMC’s financial distress burdened the county and taxpayers, as the hospital was losing up to $3 million per month. Under the transfer, it is currently making an average profit of $800,000 a month.
Supervisor Mick Gleason told The Bakersfield Californian the transfer allows KMC to bypass rules that previously made it difficult to compete with nearby hospitals. This is because Kern County Hospital Authority is an independent government entity and will not be held to the same civil service and procedural regulations.
Kern County will still contract with Kern Medical to provide healthcare services to medically indigent adults as required by state law, and county supervisors will be responsible for appointing members to the new board of governors.
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Viewpoint: One lesson about healthcare M&A from 1966 still rings true today
