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    Barry's Avatar
    Founder & Moderator

    Sonoma hospital backs away from deal with Palm Drive therapy unit

    Sonoma hospital backs away from deal with Palm Drive therapy unit

    September 16, 2014, 3:15PM

    Sonoma Valley Hospital has withdrawn a proposal to take over the Palm Drive Hospital’s rehabilitation therapy service, which, along with the hospital, was closed down in April.

    Sonoma Valley Hospital, which operates its own rehabilitation services in Sonoma, sought to assume management of Palm Drive’s West County Hand and Physical Therapy Center. Management at Sonoma Valley Hospital said the deal would have required a much larger investment than originally projected.

    Under the terms, Sonoma Valley would take over management of West County for an initial period of 18 months, after which Palm Drive would reserve the option to take the lease back and reimburse Sonoma Valley for some of its costs and expenses.

    Michelle Donaldson, chief revenue officer for Sonoma Valley, said that after conducting further “due diligence” it became clear that the initial investment was “significantly more that what we originally thought, and we weren’t in the position to invest that much capital.”

    Donaldson said information technology costs were much higher than expected. “That’s the most significant thing that drove the cost up,” she said.

    Continues at

    Last edited by Barry; 09-17-2014 at 01:31 PM.

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