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Published on 11/18/1996 All articles from this issue

El Camino Hospital to return to district control by end of the month

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By Clyde Noel / Town Crier Staff Writer

If all documents are signed as planned, the target date is Nov. 30 for the transfer of Camino Healthcare management to El Camino Hospital District control.

That information was offered at the district's Nov. 12 public meeting, when the District Board met in a closed session and later reconvened for a special meeting to offer an update on the status of settlement negotiations. The board will officially set the target date at a final meeting on settlement terms next Tuesday, with signing to take place Nov. 27.

"There is concern the public does not have enough time to read the documents and research them," said board member Dianna Adair. "It's important that this public document should be in the hands of the public so we can hear comments from them."

The negotiations for return to district control comes after months of unrest at the hospital. Camino Healthcare management has incurred financial losses in the millions, and its integrated delivery system had physicians complaining of favoritism. The district board filed a lawsuit against Camino Healthcare in October 1995 alleging conflicts of interest had occurred among those involved in a 1992 decision to "de-district" the hospital in favor of Camino Healthcare. The lawsuit, among other factors, led to negotiations for a return to district control.

For the past five weeks, representatives from the El Camino Hospital District, Camino Healthcare and the 150-physician Camino Medical Group (CMG) met weekly to discuss settlement terms. While most of the terms have been agreed upon, two major issues continue to hinder negotiations:

The proposed settlement agreement was conditioned on the physicians group finding a buyer for the Sunnyvale Medical Clinic properties. Camino Medical Group officials have advised the district a real estate investment trust may not be available by the settlement date and the group is willing to enter into a long-term lease. The terms of the lease of the Sunnyvale properties must be finalized prior to the closing.

The leases Camino Medical Group will assume or sublet must be determined. That will also include the value of the tenant improvements and how the group will pay for them. Camino Medical Group officials indicated they will assume the leases for all but one of the facilities they currently occupy.

"We should go through the documents as quickly as possible and settle the dispute on all three sides," board member Peter Pollock said. "We should get this over as quickly as possible because the hospital is losing $1 million a month by leaving it in (Camino Healthcare's) hands."

Board member Mark O'Connor agreed the settlement should come quickly. "It should be settled on what is the best interest of the people, not what is the best interest for Camino Healthcare and CMG," he said.

"It has not been easy, but it's been my intent to return the hospital to the public," said board member Dr. Paul Hoar. "It's important to move as fast as possible to avoid the financial hemorrhaging that occurs as long as it stays in Camino Healthcare hands."

With Pollock replaced in the Nov. 5 hospital district election by Dr. Edward Bough, the district board will hold its regular meeting Dec. 5. The new board, with Bough, will be sworn in Dec. 6.