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  1. TopTop #1
    jmarler's Avatar
    jmarler
     

    Hospital Sale - Measure A

    March 5 is the deadline for voting on Measure A in the special election is bringing us closer to resolving the political turbulence swirling around the fate of our West County hospital.

    A YES vote on Measure A is the only way to preserve an acute care hospital west of Hwy 101 while reducing future tax liabilities.

    A NO vote could result in the loss of hospital services in West County forever while increasing the tax burden by millions of dollars with no benefit whatsoever to the community.

    More information is attached.


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    Last edited by Barry; Yesterday at 02:54 PM.
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  2. TopTop #2
    Barry's Avatar
    Barry
    Founder & Moderator

    Hospital Sale

    n
    Board nails down terms of hospital lease/sale

    By E.I. Hillin, Staff Writer, [email protected] Feb 9, 2019 Updated Feb 11, 2019

    District values hospital at $5.2 million

    In a 4-1 vote the Palm Drive Health Care District board of directors finalized the terms of sale for the Sebastopol hospital building and property at 501 Petaluma Ave. The approved terms include a $275,000 annual lease agreement with an option to purchase within the first two years for $5.2 million.

    The details of the lease/sale agreement between the district and American Advanced Management Group were approved by the health care district board on Feb. 4.

    The terms of agreement come just as voting by mail begins for Measure A in the March 5 special election. Voter approval is required in order for the sale of the hospital building and the property it resides on because the district is a publicly owned entity, funded primarily through property taxes.

    Board President Dennis Colthurst and Director Richard Power led negotiations with AAMG on behalf of the district. Power was initially skeptical about the fair market value and co-authored the rebuttal to the argument in favor of Measure A in the Sonoma County Voter Election Guide.

    Power said the fair market value of the hospital’s property and building does not fit into a “classic” situation, like the purchase of a house or business.

    “There’s a lot of deferred maintenance,” he said. “I believe we’ve entered into a transaction that in the context we are working in, does reflect the fair market value.”

    After more than two months of negotiation, Power, Colthurst, Director Gail Thomas and Director Eira Klich-Heartt voted in favor of the hospital sale terms. The one “no” vote came from Director Jim Horn.

    Horn said he was not convinced the appraisal’s determination of fair market value for the building and the property was correct. Under law, the hospital must be sold at fair market value because AAMG is a for-profit company.

    In October of 2018, Health Care Appraisers, Inc. valued the land at $6.5 million and the building at $3.7 million conducted an appraisal.

    In December 2018 Wright Construction conducted a deferred maintenance study. Due to the necessary building maintenance needed, no value was assigned to the building and a $1.3 million demolition cost was added to determine the fair market value.

    Lease and sale terms

    Continues here


    There's also a good article by Jonathan Greenberg in the Sonoma Independent here


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  4. TopTop #3
    rossmen
     

    Re: Open House at our community hospital in Sebastopol (formerly SWMC, now Sonoma Specialt

    Your description of the consequences of voting are not accurate. Probably has a lot to do with your deep involvement in efforts to keep a hospital in seebasstoepull. Selling the property to a private for profit company only guarantees that the public loses control. Yes, while we haven't managed it well in the past, and you have done more than your share, that doesn't mean giving up public ownership is automatically a good thing. Perhaps the old hospital property is the place to build affordable housing rather than downtown parking lots? I know you have donated millions to local health care, I appreciate that.

    Quote jmarler wrote: View Post
    ...A YES vote on Measure A is the only way to preserve an acute care hospital west of Hwy 101 while reducing future tax liabilities.

    A NO vote could result in the loss of hospital services in West County forever while increasing the tax burden by millions of dollars with no benefit whatsoever to the community.
    Last edited by Barry; 02-13-2019 at 02:41 PM.
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  5. TopTop #4
    Shepherd's Avatar
    Shepherd
    Supporting Member

    Re: Hospital Sale

    Urgent Care Now Open in Sebastopol. Join us for a Grand Opening Reception Today! Wednesday, February 13th 4PM - 7PM in the conference room at Sonoma Specialty Hospital, 501 Petaluma Avenue in Sebastopol.

    In keeping with this time of expressing and providing care for those near and dear to us, young and old, our family, friends and neighbors Sonoma Specialty Hospital is very proud to announce the grand opening of Progressive Urgent Care now open 7 days a week, 9AM to 9PM.

    Sonoma Specialty Hospital and Progressive invite you to join us in celebrating our Urgent Care facility which is now open, offering the same compassionate, personal, no-wait patient service the County’s only acute care hospital west of HWY 101 has long been known for.

    Urgent Care will handle about 90% of past Emergency Room visits and accepts most insurance. A visit to this Urgent Care facility is much less expensive than a visit to an Emergency Room.

    Progressive Urgent Care is enhanced by its access to traditional services offered by Sonoma Specialty’s acute care facility including:

    • Radiology
    • Laboratory
    • 3-D Mammography
    • ICU
    • Out-patient services
    • Operating Room (out-patient surgeries resuming soon)
    • Hospital admission when referred by a doctor
    • Continued participation in the County Emergency Management Services program.
    Many competitive-paying jobs for medical professionals
    Sonoma Specialty plans to open the first ever Long Term Acute Care in Sonoma County (one of only 5 in Northern California) once the certification is complete later this Spring.
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  7. TopTop #5
    MFlute's Avatar
    MFlute
     

    Re: Hospital Sale

    The December 2018 deferred maintenance study assigned no value to the building and $1.3 million in demolition cost. Why, then, would the appraisal two months earlier give a $3.7 million value of the building?
    Quote Barry wrote: View Post
    Board nails down terms of hospital lease/sale
    By E.I. Hillin, Staff Writer, [email protected] Feb 9, 2019 Updated Feb 11, 2019

    District values hospital at $5.2 million

    ...
    In October of 2018, Health Care Appraisers, Inc. valued the land at $6.5 million and the building at $3.7 million conducted an appraisal....
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  9. TopTop #6
    luke32
     

    Re: Hospital Sale

    I believe that is at least part of the reason behind Jim Horn's NO vote on the lease and sale to AAMG - and a reason to vote NO on Measure A.

    Quote MFlute wrote: View Post
    The December 2018 deferred maintenance study assigned no value to the building and $1.3 million in demolition cost. Why, then, would the appraisal two months earlier give a $3.7 million value of the building?
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  10. TopTop #7
    Goat Rock Ukulele's Avatar
    Goat Rock Ukulele
     

    Re: Open House at our community hospital in Sebastopol (formerly SWMC, now Sonoma Specialt

    Quote rossmen wrote: View Post
    ... Perhaps the old hospital property is the place to build affordable housing rather than downtown parking lots? I know you have donated millions to local health care, I appreciate that.
    It seems crazy to tear down the hospital and rip out the parking lots to build apartments. What a waste that would be.
    Last edited by Barry; Yesterday at 11:32 AM.
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  11. TopTop #8
    Barry's Avatar
    Barry
    Founder & Moderator

    Re: Hospital Sale - Measure A

    from:



    What you should know about Measure A

    Who owns the hospital?

    The Palm Drive Health Care District (or in other words, the people) owns the hospital building and the property it sits on. The district is primarily funded through an annual $155 per parcel tax. American Advanced Management Group (AAMG) took over hospital management in September after Sonoma West Medical Center could no longer fulfill their contractual obligations. AAMG renamed the hospital Sonoma Specialty Hospital, which is now operating as a long-term acute care facility with an urgent care center.

    Why do they need a special election?

    By law, voter approval is required in order for the district to sell the hospital building and the property.

    If Measure A passes, what are the terms of the lease/sale agreement?

    The approved terms between the district and AAMG include a $275,000 annual lease agreement with an option to purchase within the first two years for $5.2 million. The purchase price includes a $4 million cash down payment and a $1.2 million promissory note to be carried through a 10-year period.

    If AAMG operates the hospital as a long-term or short-term acute care hospital with an urgent care facility for 10 years, the $1.2 million will be forgiven. A Deed of Trust secures the promissory note.

    What happens if Measure A doesn’t pass?

    AAMG is under a 10-year contract with the district to manage Sonoma Specialty Hospital, formerly Sonoma West Medical Center. When the management agreement was made, it included an exclusive option for AAMG to purchase the hospital. If Measure A does not pass, AAMG will still be under contract to manage the hospital.

    What about the district’s debt?

    If AAMG purchases the hospital, a $4 million cash payment is required right away. That money will be used to pay off the district’s general obligation bond, which will be triggered by the sale and be due in full. The other two bonds the district is paying off will need to be refinanced as taxable instead of nontaxable.

    The sale of the hospital would in no way impact the district’s bankruptcy plan. The district’s most recent financial statement reflects a $1.3 million reserve for bankruptcy pay out.

    Will the district be dissolved if the hospital is sold?

    The district can be dissolved after the hospital is sold, but only by voter approval.

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