San Leandro (Calif.) Hospital and Alameda County have come to an agreement for the future of the hospital and its emergency room, but Sutter Health in Sacramento, Calif., which owns San Leandro, must agree as well, according to a MercuryNews report.
The future of San Leandro Hospital and its emergency department has been up in the air since 2008 when a memorandum of understanding gave Sutter the option to purchase the hospital from Eden Township Healthcare District, based in Castro Valley, Calif., which it exercised in 2009. Sutter said it planned to close the hospital's emergency room.
Eden Township sued, claiming that the agreement was invalid because two members of the board who approved it had conflicts of interest. Eden Township lost its lawsuit earlier this year. Sutter took ownership of the hospital in September and has been negotiating with the healthcare district over terms of the sale, according to the report.
According to the report, San Leandro and Alameda County have each agreed to pay $3 million over three years to cover costs of operating the hospital's emergency department. Alameda County Medical Center in Oakland, Calif. — a separate entity from the county — would also contribute $3 million. ACMC would own and operate the hospital as part of the deal. Eden Township Healthcare District has pledged $250,000 for the first year and $500,000 over the next two years, according to the report. It is looking into giving more funds in order to keep the hospital open as well.
According to the report, San Leandro is losing money. ACMC would need an estimated $6 million a year to keep the hospital open.
ACMC hopes to conclude negotiations with Sutter over the next 30 to 45 days.
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The future of San Leandro Hospital and its emergency department has been up in the air since 2008 when a memorandum of understanding gave Sutter the option to purchase the hospital from Eden Township Healthcare District, based in Castro Valley, Calif., which it exercised in 2009. Sutter said it planned to close the hospital's emergency room.
Eden Township sued, claiming that the agreement was invalid because two members of the board who approved it had conflicts of interest. Eden Township lost its lawsuit earlier this year. Sutter took ownership of the hospital in September and has been negotiating with the healthcare district over terms of the sale, according to the report.
According to the report, San Leandro and Alameda County have each agreed to pay $3 million over three years to cover costs of operating the hospital's emergency department. Alameda County Medical Center in Oakland, Calif. — a separate entity from the county — would also contribute $3 million. ACMC would own and operate the hospital as part of the deal. Eden Township Healthcare District has pledged $250,000 for the first year and $500,000 over the next two years, according to the report. It is looking into giving more funds in order to keep the hospital open as well.
According to the report, San Leandro is losing money. ACMC would need an estimated $6 million a year to keep the hospital open.
ACMC hopes to conclude negotiations with Sutter over the next 30 to 45 days.
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