SAN FERNANDO : City Seeks to Resolve Hospital Dispute

The city of San Fernando has put its lawyers aside for the moment, deciding to talk out the objections it has over the way Mission Community Hospitals was formed earlier this year when San Fernando and Panorama community hospitals were combined.

“Maybe the problem we had was a lack of communication,” Mayor Raymond Ojeda said at Monday night’s City Council meeting. City Atty. Julia Sylva had outlined several financial and legal arrangements which seemed to violate agreements San Fernando Community Hospital made with the city in the mid-1970s in order for the city to back a bond issue that financed an expansion of that hospital.

Sylva had drawn up a complaint letter that was to be sent to the hospital with the council’s approval.

Mission Community Hospitals was created by joining Panorama and San Fernando community hospitals in an action begun in 1992 and finalized two months ago. However, the agreement with the city prohibited San Fernando Community Hospital from participating in a merger.

Under that agreement, the city received a “reversionary right” to the property, meaning the city could take title to the hospital in six years when the bond is paid off. However, the city is supposed to receive the hospital property “free and clear.” That is why city officials are also worried about the financial arrangements, including liens on the San Fernando property, that were made to purchase Panorama Community Hospital in 1992.

“It’s our fault that you weren’t informed about the changes that went on and we want to correct it,” said Bruce Ackerman, past chairman of San Fernando Community Hospital, who stepped up to the podium after Sylva presented a draft of the complaint letter to the council and the public. Ackerman said that hospital officials wanted to meet with the council in an open session to discuss questions.

“I was not aware until tonight that you were willing to talk to us,” Ojeda said, and the council decided to delay any legal action and schedule a public forum. Ackerman said he had been trying to meet with the city about the issue for two months.

Ackerman said after the meeting that the deal with Panorama Community Hospital was not a merger because when San Fernando Hospital purchased it, that hospital had been closed for several months. Ackerman said San Fernando merely bought an empty building along with the license to operate.