Under the deal, the University of California and Los Angeles County would form a non-profit entity to control the hospital, which closed in 2007 following several significant medical errors. The non-profit would be overseen by a seven-member board of directors. Two members will be appointed by UC; two will be appointed by the county, and three will be appointed jointly.
The county has agreed to provide $50 million annually to operate the hospital, and UC will provide physicians and medical oversight for the facility, according to the report.
The deal is expected to help the hospital run more efficiently than in the past, according to the report. The reopened facility is expected to offer fewer beds than before the closure and will have no trauma center.
Additionally, the hospital may be able to receive higher reimbursements from Medicaid because of its non-profit status. In California, private hospitals are reimbursed higher rates than public hospital in certain circumstances, according to the report.
Read the New York Times’ report on Martin Luther King Jr. Hospital.
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