Public Hospital Turning to Private Firms for Help

Ventura County Medical Center officials are talking with several private hospital companies about a possible joint venture that could enable the county hospital to strengthen its operations and move forward with a major building project.

Officials in recent weeks met or talked with representatives from a number of prominent firms, including Columbia/HCA, the largest private hospital company in the country.

Taking on a private partner could provide the financing necessary for the county hospital to move forward with plans to replace its aging kitchen and medical laboratory. Officials say without the new facilities, the hospital could lose its license.

“Discussions are being held with everybody,” said Dr. Samuel Edwards, administrator of the county public hospital. “Why? Because we’re trying to build buildings. We’re trying to find someone who will help us build them.”

For the county to enter a partnership with another private hospital firm would be a direct slap at neighboring Community Memorial, which has been at war with the county medical center for years.

“Taking this sort of a route is an absolute surprise as far as we’re concerned,” said Doug Dowie, a Los Angeles-based spokesman for Community Memorial. “It knocks the foundation out of every argument the county has ever made about protecting the safety net.”

If the county were to enter into an agreement with a private hospital firm, it would mean forfeiting control over some services and costs, Dowie said. This is something that county officials themselves have said they are not willing to do, he said.

“The big hospital chains are looking to get a foothold in the county and if you go with them, then you’re going to have to give up a certain amount of control,” he said. “They’re not going to do it for nothing.”

But if the county were to affiliate with a large private hospital firm, then “Community Memorial would have to look at its options at that point,” Dowie said. The nonprofit private hospital has been approached about a possible buyout from a number of large hospital chains, he said.

Concerned that the county hospital is moving to expand its operations and lure away its privately insured patients, Community Memorial spent more than $1 million in recent years on political campaigns and lawsuits to halt medical center building projects.

Last month, the Ventura County Board of Supervisors repealed its approval of a $28.7-million public hospital improvement project after being threatened with a voter referendum led by Community Memorial. More than half of the money for the project was to come from state grants.

After scrapping the plan, the board directed its staff to analyze a number of financing and construction options and report back in December.

Pierre Durand, director of the county Health Care Agency, said he is exploring a number of alternatives to keep the county hospital up and running, but would not divulge any details.

“Part of my responsibility as agency director is to try to position the county system so that it can continue to be strong in the health-care market,” he said. “We want to sustain our quality of service. But I’m not going to go any further.”

Edwards said some of the private hospital firms that county officials have been talking with include Tenet Health Care Corp. and Catholic Health Care West, which owns St. John’s Regional Medical Center in Oxnard.

“All sorts of talk is going on with all sorts of people,” he said.

Meanwhile, Supervisor Maggie Kildee said she was not aware that county officials had been talking with private hospital companies. But she was not surprised because they are exploring every option available to them.

“The board has said that they have to find a way to keep us operating,” she said. “Depending on what they bring back, the board may say, ‘Over our dead bodies,’ or ‘This is a good idea.’ ”

Kildee said she could not speculate on any possible partnership or merger without knowing more details.

The supervisor did say, however, that the county would be hard-pressed to join with Community Memorial in such an arrangement because of its legal and political attacks on the county hospital.

Moreover, she said officials are convinced that Community Memorial’s goal is to ultimately close the county hospital.

“It would be very hard to work with Community Memorial after all the accusations and terrible things they’ve said about the county hospital,” Kildee said.

Community Memorial officials have repeatedly denied that their intent is to close the county hospital. But they have proposed that the public hospital be converted into an outpatient center and that the county contract with Community Memorial for inpatient services.