Kaiser Will Replace Its Quake-Damaged Hospital
Kaiser Permanente’s quake-damaged Panorama City hospital will be replaced by a new facility next door, Rep. Howard Berman and officials from the nation’s largest health maintenance organization formally announced Thursday in a news conference.
Kaiser raised the possibility of closing the 325-bed facility last year and using the $68 million in Federal Emergency Management Agency repair money it received for the site to fix other facilities.
But that strategy drew stiff criticism from Berman (D-Mission Hills), who quickly crafted legislation preventing Kaiser from using the money outside Panorama City. The legislation was approved by the House of Representatives.
“What we learned from several different sources is that Kaiser was seriously considering closing the facility and using the FEMA funds for other facilities,” Berman said Thursday. “That did bother me, for quite a few reasons.”
Kaiser executives later told Berman they were only considering the option as a way to repair their Sunset Boulevard medical center, considered the hub of the company’s regional operations, he said, and the two sides began work on a compromise.
Under the deal, the hospital must open by 2007. “From an economic standpoint, I think this makes sense for both sides,” Berman said.
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