Cost Savings Seen in Dropping Hospital Plan : Health: An alternative to a new 357-bed facility would save $57.2 million annually, a study shows.

The county will save $57.2 million annually in operating costs if the Board of Supervisors continues with its plan to drop a proposed 350-bed hospital for the San Gabriel Valley and pursue creation of an alternative health care network.

The money-saving conclusion was contained in a report released Tuesday by the San Francisco consulting firm of Harvey Rose Accountancy Corp. The company was hired to evaluate whether a system of private and public doctors and hospitals in the valley can take the place of the proposed East Valley Medical Center, a $315-million, county-run hospital that has been on the drawing boards for the past two years.

The report, and an accompanying report by the county Department of Health Services, are expected to be approved by the supervisors next Tuesday.

Supervisor Gloria Molina, who had asked for assurances that medical needs of the region would be met, is satisfied with the report, press deputy Robert Alaniz said.

Under the new proposal, county health care services in the San Gabriel Valley would be provided by a $44.2-million expansion of existing county health centers in El Monte and Pomona.

The clinics--Pomona Health Center on South Park Avenue, and El Monte Comprehensive Health Center on Ramona Boulevard--would add medical care for minor illnesses and injuries, and emergency and referral services. Other, more specialized, services such as heart and brain surgeries, burn treatment and intensive care for newborns would continue to be provided at County-USC Medical Center near downtown Los Angeles.

Although the Rose report recommended a smaller expansion of only $8.9 million now and further evaluation in the year 2000, county health officials in their report recommended expansion now. Immediate expansion of the clinics would meet the projected countywide medical need of 1.6 million visits annually and would be more cost effective than waiting eight years, when construction costs will be higher, the county report said.

The need for 141 county hospital beds in the San Gabriel Valley would be met by private hospitals in the valley and in neighboring areas, both studies concluded. The Rose company surveyed six of the 21 hospitals in the area listed by the county and concluded that in those six key hospitals alone, 638 beds would be available to meet the county’s need.

Further, private doctors within the region appear willing to participate in a county-run health network, provided it operates in a manner similar to health maintenance organizations, the Rose company found.

If approved Tuesday, $60,000 would be allocated immediately to the two regional county health centers to begin planning. Meanwhile, a design contract with DMJM/Ellerbe Becket/HMC would be canceled, with a termination settlement to be negotiated.

The proposed San Gabriel Valley hospital was to have been part of a $2.2-billion package of improvements to the county-run hospital system. Included was reconstruction of County-USC Medical Center and a new hospital in the Antelope Valley. More than 52 sites were examined in the San Gabriel Valley before county officials selected a site in the City of Industry.

But as the recession lingered, county officials realized that voters would be reluctant to approve bonds to finance construction. At the same time, as hospitals overall began reporting higher and higher vacancy rates, hospital officials appeared more willing to accept county patients, many of whom are indigent or on Medi-Cal.

The supervisors scaled back the hospital plans on Oct. 20. The board agreed to drop the San Gabriel Valley hospital, providing an alternative, county-run medical system could take its place.