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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