A big challenge to keep hospital

It’s a positive sign that the Board of Governors of South Coast

Medical Center has changed its position about wanting to move the

hospital out of Laguna.

But it’s clear that the hospital isn’t out of the woods yet.

Less than two years ago, the board had gone so far as to peruse

alternative sites before alarmed community members took action and

convinced the board that staying in Laguna would be best.

The community desperately wants the hospital -- and its vital

emergency room -- to be here in perpetuity.

The hospital started out in the 1950s as a community project, with

both donated land and money to build it. The thought that this

community gem could be moved or closed down because of cold, hard

money concerns is chilling.

But in the modern world of medicine, money and HMOs, many factors

have conspired to weaken the hospital’s original, rock-solid

foundation.

HMOs have weakened the financial foundation of many hospitals

because the hospitals don’t make enough money to keep ahead of costs.

South Coast has been “in the red” for several years, losing $2.5

million to $5 million a year.

In California, HMOs aren’t the stiffest challenge that hospitals

must meet. New earthquake standards that came in after the 1994

Northridge earthquake are proving to be a huge stumbling block for

many smaller hospitals.

Ironically, hospitals that were damaged in the quake qualified for

millions in Federal Emergency Management Agency funds to make their

repairs. Hospitals that weren’t affected by the north Los

Angeles-area quake must find a way to foot the bill themselves.

It will take at least $72 million to build a facility that can

meet the new seismic standards, hospital officials said two years

ago. Where will this money come from?

While the board is now on board with the community in keeping the

hospital here, the hospital’s owner, Adventist Health, is bailing

out, placing the hospital up for sale.

Adventist apparently doesn’t believe in the future of the hospital

where it is now, and this should raise many red flags.

There are many questions about the future of the hospital,

depending on what kind of organization the next owner is. Adventist

is a nonprofit group, but a new owner may not be. Given that property

values in Laguna are among the highest in the state, the pressure

will be on to turn over the land to meet these astronomical costs.

With fingers crossed, we hope that the new owner -- whoever or

whatever it may be -- will figure out a way to keep the hospital

healthy and in Laguna.