Hospital sale approved

The state attorney general has conditionally approved the sale of South Coast Medical Center to Mission Regional Hospital Medical Center, but Mission has not yet accepted the terms set by the state.

“On Tuesday, June 9, we received notice that the California state attorney general conditionally approved the transaction to purchase South Coast Medical Center,” said Mission spokeswoman Kelsey Martinez. “We are currently reviewing the conditions and remain optimistic about completing the transaction.”

Deputy Atty. Gen. Wendi Horwitz sent a letter to Latham & Watkins, attorneys representing Mission Hospital, detailing conditions of the sale.

The city of Laguna Beach is awaiting Mission Hospital’s decision with respect to the conditions, said Assistant City Manager John Pietig.

“The city did not get everything we were asking for, but the conditions from the attorney general are generally in line with what we wanted,” Pietig said.

“We are looking forward to Mission taking over operation of South Coast Medical Center,” he said.

The conditions include a provision that the hospital be maintained through the end of 2012, no matter what happens regarding seismic retrofitting requirements by the state.

Seismic requirements for California hospitals — put in place after the 1994 Northridge earthquake — have threatened to close down hospitals due to the expense of retrofitting and has been an issue for the Laguna Beach facility, which is 50 years old.

Among the other conditions:

 24-hour emergency services with 12 beds as currently licensed;

 Psychiatric services for “involuntary” patients with a minimum of 18 beds as currently licensed;

 Intensive care services with four beds (less than the hospital now has).

 A minimum $5-million investment in capital improvements and equipment over three years, with annual reports to the attorney general’s office detailing the expenditures;

 $1.8 million to be transferred by July 31 to the Irvine Health Foundation to establish a fund for cancer and cancer related services to the hospital’s service area;

 All remaining restricted funds in the now-dissolved South Coast Medical Center Foundation will be transferred by July 31 to the Irvine Health Foundation to be used at the Laguna Beach hospital;

 For five years after the purchase, Mission is required to provide community benefit services at the hospital at an annual cost of $418,400, and if that amount is not spent, the deficient amount will be donated to the Laguna Beach Community Clinic.

The documents can be found at ag.ca.gov/charities.