Hospital Certificates Sale to Be Delayed

Citing a number of problems that could drive up the project’s costs, Ventura County’s Public Facilities Corp. decided Monday to delay at least until March the sale of bond-like certificates to fund a $51-million expansion at the county hospital.

The county, which initially planned to issue certificates of participation as early as February, has until September to do so.

“There’s a lot of money involved,” said Facilities Director Norman Blacher. “I don’t see any reason for the corporation to rush into this.”

The Public Facilities Corp., whose five members are appointed by the Board of Supervisors, was established by the supervisors in 1974 as a separate entity to sell bond-like certificates. Approval by the board is required before the county can raise money for improvements at the county hospital.

Blacher said he wants time to consult with finance experts to determine whether Orange County’s financial crisis could harm the county’s credit rating, which would make it more expensive to borrow money.

Blacher also said he wants confirmation that the state will indeed pay 70% of the expansion costs at Ventura County Medical Center before issuing the certificates.

He said he is concerned that Proposition 187--the voter-approved initiative that bars non-emergency public health services to illegal immigrants--could mean fewer patients at the county hospital and, as a result, fewer state dollars.

Blacher said he also wants to study a consultant’s report on the possible consolidation of county hospital services and those of neighboring Community Memorial Hospital. Community Memorial, which commissioned the report, has sued the public hospital over what it charges are unfair competitive practices.

By consolidating services, Blacher said the county could dramatically reduce the cost of expansion.

But John F. Fay, another member of the Public Facilities Corp., warned that the agency is not an elected body and should not be delving into policies set forth by the Board of Supervisors.