Hospital Not Losing Money, Audit Shows

Disputing claims of Pleasant Valley Hospital officials, an independent audit found that the Camarillo hospital is not losing money and could exist as an independent facility possibly until the year 2000.

The audit released Thursday by the Camden Group of Torrance also showed that Pleasant Valley Hospital’s operating costs are higher than comparable facilities. Furthermore, the audit said, hospital administrators were tardy in forming a foundation last year to bolster hospital income with private donations.

Auditor Steven T. Valentine, hired by the Camarillo Health Care District for nearly $20,000, told about 100 Camarillo residents at a district meeting Thursday that the hospital has been making an annual $2-million profit for the last three years and should break even if not turn a profit this year.

Despite Pleasant Valley’s current financial health, however, Valentine said the nonprofit medical center should start looking for a financial partner--following a trend of small, independent hospitals.

“In the longer term, the hospital still will need a partner to continue,” Valentine said.

And even in the short term, the hospital would need to institute some cost-cutting measures if it were to continue on its own because of its $20-million debt, he said.

Several residents at the meeting applauded the district for hiring the auditor to review Pleasant Valley’s financial records. They said the audit confirmed their suspicions that hospital officials were overstating the hospital’s financial troubles.

Pleasant Valley officials have been promoting its proposed merger with St. John’s Regional Medical Center in Oxnard. They said the financial marriage is required because Pleasant Valley is losing money and will show an annual deficit of $3.5 million to $4 million by 1996.

Pleasant Valley officials were unavailable for immediate comment on the audit’s findings.

The district board unanimously voted to ask Pleasant Valley not to merge with St. John’s unless its meets a number of conditions, including maintaining its current level of services at the Camarillo facility for eight to 10 years.

District officials also want St. John’s, if the merger takes place, to spend any Pleasant Valley Hospital assets on improving the Camarillo facility rather than on routine operating costs.