Senate Bill 408, which was proposed in January, arose following Ontario, Calif.-based Prime Healthcare Service’s acquisition of Alvarado Hospital in San Diego. Labor Union SEIU-United Healthcare Workers West called on the state to stop Prime from operating the hospital because it did not apply for a new license after the acquisition. Prime, however, said the acquisition merely constituted a change in interests as the licensee “Alvarado Hospital” had not changed.
Gov. Brown vetoed the bill, saying the bill would have required a new license not only for changes in ownership but also for “far less important changes,” resulting in additional costs for hospitals and the government, according to the report.
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