Hospital Lease Proposal Letter - PDF - PDF

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Hospital Lease Proposal Letter document sample

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							Project Approval Process
                                                                                                                    Peninsula Health Care District
    he current new hospital proposal must pass            • Design drawings and construction
T   through a rigorous approval process. Before
the Peninsula Health Care District formally
                                                            document development (18-19 months)
                                                                                                                    1783 El Camino Real
                                                                                                                    Burlingame, CA, 94010
                                                                                                                                                                                      Place
                                                                                                                                                                                     Postage
                                                          • EIR and conditional use permit process                  Phone: (650) 696-5450                                             Here
deliberates on this proposal a number of                    (56-60 weeks)                                           Fax: (650) 696-5336                                                        SPRING 2003                                 NEWSLETTER FOR PHCD                                               NO. 1
“town hall” meetings, “study sessions” and                                                                          email: info@peninsulahealthcaredistrict.org
regular Board meetings will be held to                    • Election seeking approval of residents                  www.peninsulahealthcaredistrict.org
explore key details of the proposal and other               within the Peninsula Health Care District                                                                                           Inside this
possibilities. The public is invited to express their     • California Office of Statewide Health Planning                                                                                         Issue                Dear District Member,
concerns and/or support for any and/or all aspects          and Development (OSHPD) review and approval
of the proposal during this long and public process.        of new hospital plans (18 months)                                                                                                                           Welcome to our first edition of the Peninsula Health Care District newsletter.
The hospital District has already heard some con-                                                                                                                                                                       A number of important decisions regarding the future of the Peninsula Medical Center
cerns and expects to hear more as we all become                                                                                                                                                          1              are approaching and we want to inform you about how they affect you and our
more fully familiar with what has been proposed.        “Best Case” Timeline                                                                                                                     Letter to District     community.
Below is a broad overview of the approval process.         • With appropriate approvals, garage                                                                                                      Members
Some of the requirements listed may occur                    construction and initial site work begins                                                                                                                  The Peninsula Health Care District was established in 1947 by the voters to build and
concurrently. All time frames are estimates. All             first quarter 2004                                                                                                                                         operate what is now Peninsula Medical Center. Today, more than 50 years later, the
requirements in bold represent opportunities for                                                                                                                                                                        District is facing some complex and long-term decisions regarding the state of our
                                                           • With appropriate approvals, hospital building                                                                                             2
public input.                                                                                                                                                                                                           hospital and the health care of our community.
                                                             construction begins fourth quarter 2005                                                                                              PHCD Timeline
                                                           • Best case move-in estimate is third                                                                                                                        The California legislature enacted a law establishing stricter earthquake safety
  • Peninsula Health Care District Board                                                                                                                                                                                standards for hospitals that must be met by 2013, or the health care facilities must
                                                             quarter 2009
    review and approval                                                                                                                                                                                                 cease operation. Our current hospital has served this community with great
                                                                                                                                                                                                        2
         – Town Hall                                                                                                                                                                             Peninsula Health       distinction, but in order to both provide the greatest seismic safety and to meet
         – Presentations from independent                                                                                                                                                                               the law, we must modernize and update our facility to new, higher standards.
           experts hired by the District to
                                                        Upcoming Public Meetings                                                                                                                   Care District
           analyze key aspects of the                      General Education Session: Financing Options Available                                                                                                       The Peninsula Health Care District and Mills-Peninsula Health Services have each
           current Mills-Peninsula                         to Health Care Districts                                                                                                                                     conducted their own independent engineering study about how to best meet the new
                                                           Tuesday, March 11, 2003, 7:00 P.M.                                                                                                            3
           Health Services proposal                        Sierra Room, Peninsula Medical Center                                                                                                                        safety standards. Both studies determined that Peninsula Medical Center does not
                                                                                                                                                                                                  Mills-Peninsula
                                                           1783 El Camino Real, Burlingame                                                                                                                              meet new California laws and needs significant improvements. Both the District and
  • Burlingame Planning Commission                                                                                                                                                                Health Services
                                                                                                                                                                                                                        Mills-Peninsula Health Services believe the best approach would be to re-build the
    initial review and “scoping” meeting                   Study Session: Finance Options Avaibable to PHCD                                                                                                             hospital because a retrofit would be more costly than starting anew—and require the
    to identify key issues to be evaluated                 Monday, March 24, 2003, 7:00 P.M.
                                                           San Mateo City Council Chambers                                                                                                                              hospital to periodically close through some portion of the retrofit.
    in the Environmental Impact Review (EIR)                                                                                                                                                            3
                                                           330 W. 20th Avenue, San Mateo
                                                                                                                      What’s Inside...                                                             New Hospital:
                                                                                                                                                                                                  On the Horizon
                                                                                                                                                                                                                        Mills-Peninsula Health Services has presented a new proposal to rebuild the hospital
                                                                                                                                                                                                                        for the District’s consideration. It is the District Board’s responsibility to
                                                                                                                                                • Letter to District Members                                            accept, reject or modify the proposal submitted to us by Mills-Peninsula
About the Peninsula Health Care District Board                                                                                                                                                                          Health Services. This plan, as it has been submitted to us, is outlined in this
                                                                                                                                                                                                        4               newsletter. It was submitted to the District Board at our January 16th meeting and
   n 1947, the Peninsula Health Care District was       Medical Center to operate more economically and                                         • PHCD Timeline                                  Current Proposal       again displayed at a January 30th town hall meeting sponsored by Mills-Peninsula
I  established with broad support from the San          efficiently, as well as freeing District resources to
                                                                                                                                                • Peninsula Health Care District
                                                                                                                                                                                                                        Health Services.
Mateo County voters. At the time, the voters            invest in local health care.                                                                                                                    5
                                                                                                                                                                                                                        In the coming months the District will fully analyze this proposal. To that end, we have
created the District and a tax base to build and                                                                                                                                                 Project Approval       hired some of the nation’s best advisors to independently evaluate the Medical
                                                        Since the transfer of operation management respon-                                      • Mills-Peninsula Health Services                                       Center’s proposal. As we receive additional information we will present it to you
operate what is now Peninsula Medical Center. In                                                                                                                                                     Process
                                                        sibilities, the Peninsula Health Care District has                                                                                                              through this newsletter.
order to bring citizens into the decision-making
                                                        continued to serve the community by responding to                                       • New Hospital: On the Horizon                                          Additionally, the District will be hosting a series of town hall meetings and study
process of the new hospital, a publicly elected five                                                                                                                                                     5
                                                        local health needs, allocating resources for programs                                                                                                           sessions. The first of such meetings was held on February 20th to discuss the
member District Board was created. As a result, the                                                                                                                                            Start and Finish Dates   architectural design aspect of the submitted proposal and at a second meeting, on
                                                        that enhance the health of the District’s residents                                     • Current Proposal
Peninsula Hospital was built in 1954 using public                                                                                                                                                                       March 4th, Mills-Peninsula presented an overview of their proposal at the request of
                                                        and as the lessor of Peninsula Medical Center.
funds and private donations and for more than 30                                                                                                                                                                        the District Board. Our next public meetings will be on March 11th and March 24th.
                                                                                                                                                • Project Approval Process                             5                Included within this newsletter is more information about these future meetings.
years the District Board made all of the hospital’s                                                                                                                                             Town Hall Meetings
operational decisions.                                                                                                                                                                            and Locations         We look forward to hearing your thoughts and concerns throughout this process as
                                                                                                                                                • Start and Finish Dates                                                we all work toward securing a solid foundation for the future of health care in this
In 1985, the Board voted to lease the hospital,                                                                                                                                                                         district. If you have any questions, feel free to call at 650-696-5450, or email
including all operations, to Mills-Peninsula Health                                                                                             • Town Hall Meetings and Locations                      5               info@peninsulahealthcaredistrict.org.
Services, a private non-profit group that owned and                                                                                                                                               About the PHCD
operated Mills Health Center in San Mateo. The                                                                                                  • About the PHCD Board                                Board             PHCD District Board
lease and merger of the hospitals allowed Peninsula
Peninsula Health Care District                                                                                                                    Mills-Peninsula Health Services                                                                                                                          Current Proposal

  The District’s health interests of the Theare to
     safeguard the
                     primary responsibilities

  and the District’s economic well-being.
                                           community
                                              Board
                                                                         this year’s total giving to $1,414,000.

                                                                         Additionally as lessor of the Peninsula Medical Center,
                                                                                                                                                  Mills-Peninsulamoreathan 2,500 employees care
                                                                                                                                                                     Health Services, an affiliate of
                                                                                                                                                        Sutter Health, is not-for-profit health
                                                                                                                                                  organization with                               that
                                                                                                                                                                                                                          The responsibilities of Mills-Peninsula include day-to-
                                                                                                                                                                                                                          day operations and general management. Mills-                                    Currently, aHealthhospital hasThisHealth Servicesbyaffiliate,
                                                                                                                                                                                                                                                                                                                Peninsula
                                                                                                                                                                                                                                                                                                                            new
                                                                                                                                                                                                                                                                                                                                   Services.
                                                                                                                                                                                                                                                                                                                                                been proposed

                                                                                                                                                                                                                                                                                                           financial guarantee of Mills-Peninsula
                                                                                                                                                                                                                                                                                                                                                                   Mills-
                                                                                                                                                                                                                                                                                                                                                   proposal includes the
                                                                                                                                                                                                                                                                                                                                                                                      a general acute care hospital with a 24-hour,
                                                                                                                                                                                                                                                                                                                                                                                      seven-day emergency department and a
                                                                                                                                                                                                                                                                                                                                                                                      mutually agreed complement of core hospital services.
                                                                                                                                                                                                                          Peninsula has its own Hospital Foundation, focused
  takes this duty seriously and works hard to identify,                  the Board ensures the economic well-being of the                         leases and operates Peninsula Medical Center in                                                                                                          Sutter Health, and awaits approval from the District Board.             • The District will have new oversight of maintenance
                                                                                                                                                                                                                          upon fund raising efforts including corporate and
  promote and support a multitude of health care                         District and the Peninsula Medical Center.                               Burlingame, as well as owns and operates Mills                                                                                                           The current proposal has been presented for public                         of services at the new hospital.
                                                                                                                                                                                                                          foundation solicitations, planned giving and direct                              information only and has not yet been endorsed in
  programs that benefit the residents of the District.                                                                                            Health Center in San Mateo. Mills-Peninsula Health                                                                                                                                                                               • Mills-Peninsula will transfer its interests in
                                                                         As landlord of Peninsula Medical Center, the Peninsula                                                                                           mail. Promotion and educational outreach for the                                 any way or acted upon by the District.                                    certain properties to the District.
                                                                                                                                                  Services has a locally appointed 21 member Board of
  The District addresses important health needs by                       Health Care District is responsible for:                                 Directors that manages the business affairs of Mills                    hospitals is also executed by Mills-Peninsula including                          The present proposal                                                    • In certain circumstances, both Mills-Peninsula
  allocating resources for:                                                                                                                       Health Center and Peninsula Medical Center.                             newsletters, HealthPoint and Senior Focus News.                                  includes an approxi-                                                       and the District will have a right to buy
                                                                            • Reviewing the lease and the
                                                                                                                                                                                                                                                                                                           mate $400 million                                                          out the other party during the term of
          • Community based programs                                          performance of the lessee                                                                                                                                                                                                                                                                               the new land lease agreement.
            and activities                                                                                                                                                                                                                                                                                 investment       from
                                                                            • Reviewing audits and other                                                                                                                                                                                                   Mills-Peninsula     to
          • Educational opportunities                                         appropriate information such                                        New Hospital: On the Horizon                                                                                                                             build a seismically                                                   Current proposed new hospital includes:
          • Capital projects throughout                                       as quarterly lease and bond                                                                                                                                                                                                  safe, general acute                                                      • A six-story (over one lower level), approximately
                                                                              compliance reports from the                                                                                                                 Mills-Peninsula outlining the following terms to be                              care hospital to                                                           450,000-square foot general acute care hospital
            the community

  Annually, the District contributes to the community
                                                                              District’s accountants, and
                                                                              general operational reports
                                                                                                                                                  W      ith Senate Bill 1953, the State of California
                                                                                                                                                         established stricter seismic safety standards for
                                                                                                                                                  general acute care hospitals, which must be met by
                                                                                                                                                                                                                          negotiated:                                                                      replace      Peninsula
                                                                                                                                                                                                                                                                                                           Medical Center using Rendering Health Services
                                                                                                                                                                                                                                                                                                                                    Peninsula
                                                                                                                                                                                                                                                                                                                                                provided by Mills-
                                                                                                                                                                                                                                                                                                                                                                                      including an additional floor for future expansion.
                                                                                                                                                                                                                                                                                                                                                                                      The main entrance is on Trousdale Avenue
  by awarding grants to a diverse group of agencies and                       of Peninsula Medical Center to                                                                                                                    • Lease arrangement                                                        its current 26-acre                                                      • The current hospital remains open and operational
                                                                                                                                                  2013 or a termination of operations is required. Mills-                                                                                                                                                                             during construction of the new hospital
  programs. Each year the District Board goes through                         determine that the lessee                                                                                                                                                                                                    site. In exchange for the building, Peninsula Health Care
                                                                                                                                                  Peninsula and the District did two independent studies,                       • The District’s degree of oversight                                       District will lease to Mills-Peninsula the publicly owned
  an extensive application and approval process in order                      is in compliance with the lease                                                                                                                                                                                                                                                                       • The new hospital being connected with approximately
                                                                                                                                                  both concluding that the                                                        over the new hospital                                                    portion of the site for $1 per year.                                       145,000-square foot office building with space for
  to select the appropriate recipients and the best                                                                                               only feasible approach to
                                                                            • Negotiating a lease agreement                                                                                                                                                                                                                                                                           administration and hospital-oriented specialty physicians
  distribution of grants into the community. Since 1999,                                                                                          comply with SB 1953                                                           • Return of properties to the District
                                                                              with the lessee that will most greatly                                                                                                                                                                                       The proposal involves restructuring the relationship between             • A seismically safe building employing advanced
  the District has distributed more than $400,000 a year                                                                                          would be to re-build the                                                        that had been donated to Mills-
                                                                              benefit the District residents                                                                                                                                                                                               the District and Mills-Peninsula, grants the District a voice              engineering technology called base isolation that
  into local health care programs with over $520,000 in                                                                                           hospital. Although a retro-                                                     Peninsula in the 1985 lease                                              in deciding which services the hospital must provide                       provides the highest level of seismic safety
  grants slated to be awarded in 2003.                                                                                                                                                                                            agreement
                                                                                                                                                  fit was possible, the cost                                                                                                                               and transfers several pieces of property back to District                • 243 beds in all private rooms (with the exception of
                                                                         Note: The Peninsula Health Care District has no                          was significant and there                                                                                                                                ownership. In this proposal, at the end of the new 50-year                 behavioral health, where socialization benefits of two-
  Current grant recipients include: Youth and Family                     oversight or responsibility for the Mills Health Center                                                                                          Architectural plans for a new hospital have been devel-                          land lease agreement the buildings and all the land will trans-            bed rooms is preferred)
                                                                                                                                                  was no guarantee that the
  Assistance’s Crisis Intervention & Suicide Prevention                  located in San Mateo.           Mills Health Center                                                                                              oped by Mills Peninsula Health Services and are cur-                             fer to the District, unless the agreement is extended or a               • Greater technology-ready facility
                                                                                                                                                  hospital could remain
  and Insights programs ($60,000); Samaritan House                       is wholly owned                                                                                                                                  rently under review by the District. The District will                           new agreement is reached. At the close of the 50-year lease,
                                                                                                                                                  open during retrofitting. Key supporters looking                                                                                                                                                                                  • Emergency department enlarged by 42%
  Medical Clinic ($100,000); Ombudsman Program of San                                                                                                                                                                                                                                                      the District would be obligated to reimburse Mills-Peninsula
                                                                         and operated by                                                                                                   for proposed
                                                                                                                                                  Because a new hospital is over plansHospital, 1954                      host a series of town hall meetings and study sessions                                                                                                    • A more patient and family-focused hospital with family
  Mateo County ($55,000) and two Mills-Peninsula                                                                                                                                Peninsula
                                                                                                                                                                                                                                                                                                           Health Services for book value of repairs or restorations
                                                                         Mills-Peninsula                                                          required, Mills-Peninsula                                               to present the settlement plans as they have been                                                                                                           sleeping accommodations, gardens and walking trails,
  Senior Focus programs including Alzheimer’s and Adult                                                                                                                                                                                                                                                    made during the last 25 years of the lease.                                and expanded, level parking
  Day Health Care ($210,000) and Wise & Well programs                    Health Services, an                                                      Health Services is renegotiating all terms and                          proposed, and to discuss with the community the
  ($95,000).                                                             affiliate of Sutter                                                      conditions of the established 1985 lease with the                       likely impacts the proposal will include. We look                                Other key operational logistics for the current                          • A helipad
                                                                         Health, and is out-                                                      Peninsula Health Care District. Under the current                       forward to hearing from you regarding this most                                  proposal include:                                                        • A neighborhood-sensitive hospital layout with noisier
                                                                         side the authority of                                                    contract, the District does not have the authority to                   important matter for all of us. If you are unable to                                                                                                        features set away from residential neighborhoods
  Financial awards for this year are also being presented                                                                                                                                                                                                                                                    • Mills-Peninsula will develop the new hospital
  to Children’s Health Initiative ($750,000) and College                 the Peninsula Health                                                     make operational or policy decisions.                                   attend these meetings and have questions regarding the                               without additional taxes from District                            For more information regarding the current proposal submitted
  of San Mateo for nursing education ($144,000) bringing                 Care District.                                                                                                                                   proposal and/or the process please visit our web site at                             residents. Financing will be attained through                     to the Peninsula Health Care District by Mills-Peninsula Health
                                                                                               Current Peninsula Medical Center                   Since 1999, the terms of the new hospital lease, as well                                                                                                     Mills-Peninsula’s affiliation with not-for-
                                                                                                                                                  as the construction logistics of a new hospital have                    www.PeninsulaHealthCareDistrict.org, email us at                                                                                                       Services visit their website at: www.mills-peninsula.org/newhospital.
                                                                                                                                                                                                                                                                                                               profit Sutter Health, hospital operating
                                                                                                                                                  been negotiated. In August 2000, a letter of intent for                 info@peninsulahealthcaredistrict.org or call us at 650-                              revenues and community philanthropy.
                                                                                                                                                  a revised agreement was signed by the District and                      696-5450.
                                                                                                                                                                                                                                                                                                             • Mills-Peninsula will be obligated to maintain

Peninsula Health Care District Timeline
   1947                               1954                                    1960                            1978                          1979                                 1985                                      1994                                      1996                              1997                                   1999                               2000                                      2002
December 2,                                        March 2, 1954 -            Peninsula Hospital          Peninsula established a         Peninsula celebrated its 25th      Peninsula (Burlingame) and Mills (San        The State of California passed Senate     Mills-Peninsula joined Sutter   The District filed a lawsuit           The District Board began             A letter of intent was signed to       A proposal for a new $400
1947 - San                                         After two and a            changed its name to         Cardiovascular Surgery          anniversary, as well as signed a   Mateo) hospitals merged to form Mills-       Bill 1953, establishing stricter safety   Health, a non-profit health     against Mills-Peninsula Health         negotiating the terms of a           restructure the relationship           million, not-for-profit community
Mateo County                                       half years of con-         Peninsula Hospital          program at the hospital         joint planning agreement with      Peninsula Hospitals in an effort to          standards for general acute care hos-     system of 27 hospitals in       Services for alleged conflict of       new hospital lease and the           between Peninsula Health Care          hospital and restructured
residents voted                                    struction, the             and Medical Center.         through an affiliation with     Mills Memorial Hospital in the     expand the scope and quality of services     pitals, which must be complied with       Northern and Central            interest in the original lease.        construction of a proposed           District and Mills-Peninsula           relationship with the Peninsula
                                                   Peninsula Hospital                                     the University of California,   city of San Mateo.                 provided to residents. Both Mills and        by 2013. Mills-Peninsula and the          California. The Peninsula                                              new hospital with Mills-Peninsula.   Health Services.The revised            Health Care District were
to create the
                                                   opened in                                              San Francisco.                                                     Peninsula continued to operate as full       District did two independent studies,     campus officially became                                                                                    agreement outlined terms to            submitted by Mills-Peninsula
Peninsula                                          Burlingame. The                                                                                                           service hospitals.                           both concluding that the only feasible    Peninsula Medical Center                                                                                    negotiate the settlement of the        for consideration and are
Health Care                                        new hospital, built
District,                                                                                                                                                                                                                 approach would be to re-build the         and inpatient care was                                                                                      1997 lawsuit, including the lease      currently under review by
                                                   primarily through
establishing a                                                                                                                                                               As part of the consolidation, the District   hospital. Although a retrofit was pos-    consolidated there. At this                                                                                 arrangement, the District’s            the District Board.The
                                                   taxpayers’ support,
tax base with a                                    provided 153 beds                                                                                                         Board leased the Peninsula Medical           sible, the cost was prohibitive and       point, ICU and inpatient                                                                                    degree of oversight and the            acceptance of this proposal
                                                   and carried a staff                                                                                                       Center and its land to Mills-Peninsula       there was no guarantee that the           services were eliminated                                                                                    return of properties to the            by the District Board would
five-member
                                                   of 275 employees                                                                                                          Health Services, a private non-profit        hospital could remain open during         at the Mills Health Center                                                                                  District.                              settle the 1997 lawsuit if
elected board
                                and 100 physicians and surgeons.                                                                                                             group that assumed management of the         the retrofit.                             in San Mateo.                                                                                                                                      approved by the voters.
responsible for developing
                                                                                                                                                                             hospital. At this time, the District also
and opening a new hospital in
                                                                                                                                                                             donated 7 parcels of land to Mills-                                                    The Family Birth Center
San Mateo County.                                                                                                                                                            Peninsula Health Services.                                                             opened at the Peninsula
                                                                                                                                                                                                                                                                    Medical Center.

						
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