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When U.S. Sen. Kamala Harris accredited the sale of six nonprofit California hospitals in 2015 because the state legal professional common, she imposed strict circumstances on the brand new company homeowners, requiring them to proceed to offer essential well being companies to space residents.
Now her successor, fellow Democrat Xavier Becerra, is asserting his authority in courtroom to implement these circumstances on Santa Clara County, which desires to purchase two of the hospitals out of chapter. County officers warn that the legal professional common’s stance might drive the closure of the hospitals, limiting well being care entry for a whole bunch of 1000’s of individuals.
A courtroom listening to is ready for Wednesday.
At the guts of the ability battle is whether or not Santa Clara County, which has made a $235 million bid to amass the financially troubled Verity Health System hospitals, should abide by a 2015 settlement between the legal professional common’s workplace and the brand new company proprietor.
“To some extent the attorney general doesn’t want to give up this authority,” stated Susan Channick, a legislation professor emerita at California Western School of Law, San Diego. “The idea of the attorney general’s office is to make these hospitals provide health services.”
The legal professional common is the state watchdog who oversees gross sales of nonprofit hospitals. In this position, authorized consultants say, the legal professional common can take steps to make sure that key companies, reminiscent of emergency room care, and surgical and reproductive well being companies aren’t dropped as a result of they don’t earn a living for brand new homeowners.
That’s what occurred when Harris, who final week introduced her candidacy for president in 2020, intervened within the buy of two Verity hospitals — O’Connor Hospital in San Jose and St. Louise Regional Hospital in Gilroy — together with four other nonprofit hospitals in San Mateo and Los Angeles counties. As a part of the cope with Harris, Verity would hold various companies operating for 5 to 10 years, together with intensive care and obstetric companies in Gilroy and 24-hour medical companies in San Jose.
Now Verity has filed for chapter and its hospitals are on the market.
Santa Clara County was the one bidder for the 2 hospitals inside its borders, and in December a federal chapter choose in Los Angeles dominated that the county didn’t have to fulfill any of the legal professional common’s necessities, saying that Becerra had acknowledged in courtroom paperwork that he didn’t object to the sale and had waived the circumstances throughout his failed negotiations with the county.
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Becerra vehemently disagrees with the choose’s evaluation and denies that he waived the circumstances, arguing that the brand new proprietor should adjust to the circumstances regardless that it’s a authorities entity.
He filed an enchantment and a movement to briefly block the sale, hoping to present either side extra time to barter. A listening to on his movement is scheduled for Wednesday. If Becerra loses, the sale would possible proceed.
“We’re going to do everything we must to make sure that the people who live and depend on those health facilities know that their health services will be protected,” Becerra instructed California Healthline.
Local elected officers say Becerra isn’t acknowledging that the hospitals would possible shut with out them, and that a purchase order by the county authorities — whose mission is to offer safety-net well being companies — is a far cry from a company takeover.
“There’s a difference between a corporate acquisition and a rescue operation,” stated County Board of Supervisors President Joe Simitian, a former state senator. “The attorney general’s office has been clear about its need to assert jurisdiction, but let’s focus on the patients.”
“It shouldn’t be about power and politics,” Simitian added. “It should be about the residents of Santa Clara County who may not have a hospital if this deal crumbles.”
Although Santa Clara County makes up a part of the rich Silicon Valley, greater than 403,000 of its residents are eligible for Medi-Cal, the state medical insurance program for low-income folks. County officers say the acquisition of the 2 hospitals — particularly St. Louise in rural Gilroy — will broaden the county’s safety-net well being care system and relieve stress on its overcrowded public hospital, Santa Clara Valley Medical Center.
The KPC Group, which owns hospitals, clinics, business actual property and agricultural analysis facilities all over the world, has bid $610 million to buy the 4 Verity hospitals in San Mateo and Los Angeles counties, however the sale has but to be accredited by a courtroom.
The dispute between Becerra and Santa Clara County is troubling to space residents, who confirmed as much as assist native officers at a information convention final week to denounce the legal professional common’s try to dam the sale. If the 93-bed St. Louise Regional Hospital closes, the closest main hospital can be no less than 20 miles away.
“South County really needs a major hospital. We are a community of farmworkers, of low-income people,” stated Gilroy resident Sally Armendariz, 76.
While Becerra desires to make sure sure well being companies stay, county officers argue the necessities are too prescriptive. For instance, they don’t wish to agree to offer a particular variety of beds for intensive care and obstetrics, they are saying, as a result of they want flexibility to prepare public well being companies throughout the area.
Santa Clara County Counsel James Williams described Becerra’s authorized motion as “really dangerous,” as a result of it threatens not solely the sale of the hospitals — however their existence. The county’s buy settlement with Verity expires Feb. 28, and if the deal isn’t concluded by then, it’s voided, county officers stated.
It’s not clear whether or not county officers are posturing to get out of the circumstances that Harris imposed, or expressing a respectable concern that the hospitals would certainly shut, stated Thomas Greaney, professor of legislation at UC Hastings College of the Law-San Francisco.
“There’s clearly a factual question here. Is it really true?” Greaney requested. “Is it really an endgame that they are presenting?”
Over time, attorneys common across the county have grow to be extra vigilant about gross sales of nonprofit hospitals which were supported by the general public for years with tax exemptions and different advantages, Greaney stated.
“There are important concerns they are protecting,” he stated. “It is the kind of thing I think should be subject to negotiation and settlement.”
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Samantha Young: [email protected]”>[email protected], @youngsamantha
Barbara Feder Ostrov: [email protected]”>[email protected], @barbfederostrov
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