Hospital Drops Suit Against County Rival

Both sides in the bitter and divisive legal battle between Ventura’s two largest hospitals saved hundreds of thousands of dollars Thursday when Community Memorial Hospital officials agreed to drop their lawsuit against the Ventura County Medical Center.

The suit was scheduled for trial Aug. 15, but a judge ruled last week that Ventura County Medical Center can go ahead with construction of its new wing, which was the main part of privately run Community Memorial’s objections.

The private hospital has appealed that decision.

But officials agreed Thursday to drop the remaining challenges to the county’s health insurance and ambulance policy. Also dropped was the private hospital’s contention that the county’s contracts with its doctors are illegal.

The private hospital reserved the right to refile the lawsuit later, and the latest move does not prevent further litigation as Ventura County tries to finance construction of its new wing.

“I have to prepare for the worst,” said Noel Klebaum, Ventura County assistant counsel.

At any rate, the appeal of Judge Richard Abbe’s ruling will probably prevent the county from issuing bonds to pay for the proposed $50-million wing, county officials said.

“The bonds are not attractive” to buyers with an appeal pending, Ventura County Supervisor Maggie Kildee said. “I don’t sense the board will choose to [issue the bonds with an appeal pending]. I wish we were in a different position.”

Unless Community Memorial drops its appeal, the issue is expected to take nine to 18 months to resolve, Klebaum said. Community Memorial lawyers and administrators could not be reached for comment late Thursday.

Lawyers for Community Memorial previously have said they intend to pursue the appeal as far as they can. Negotiations between the two hospitals have been marked by acrimony with both sides entrenched in their positions, court documents showed.

But Ventura County Medical Center Administrator Pierre Durand said he was encouraged by a recent meeting he had with Michael Bakst, his counterpart at Community Memorial. It was the first meeting between the two since the lawsuit was filed last year. No agreement was reached, but Durand called the one-hour meeting positive.

“The fact that we met tells me there is hope,” Durand said.

Klebaum said Thursday’s move will save the county $300,000 to $500,000 in legal expenses. Abbe still has to approve the dismissal, which he is expected to do next week.

Scrambling to compete in a shrinking health-care market, Community Memorial officials had filed the suit last year demanding that Ventura County Medical Center be prevented from treating anyone but poor, uninsured patients.

Three blocks separate the two competitors in the heart of Ventura.