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Published on 03/30/1998 All articles from this issue

Righting a wrong at El Camino Hospital

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We, like most residents in our community, are delighted by the turnaround in El Camino Hospital operations. All indicators point to a public hospital that is not only in the black financially, but thriving after a four-year period of failing finances and operational uncertainty.

Most of us were very much in the dark about why the hospital was running up huge deficits after de-destricting and attempting an integrated delivery system in 1992. Even after talking to key players on both sides of the issue, we struggled mightily to make sense of the hospital's direction.

There were times that we took our frustration out on the El Camino Hospital District board, which had filed a lawsuit to return the district to public control. In 1996, we opined that the district board didn't know any better and was inclined to forward the special interests of physicians since three of the five members were doctors. As the November 1996 hospital board election approached, with three seats open, we suggested the board needed three new "white hats" to come in and save the day.

It turns out that the "white hats" were on the board all along - in the presence of board president Paul Hoar, Dominick Curatola and Mark O'Connor. It was they who most vigorously pursued dismantlement of the Camino Healthcare system that allowed the hospital to flourish once more. We were wrong to propose a change.

In 1995, following a September 1994 merger with 150-or-so physicians comprising the Camino Medical Group, Camino Healthcare posted a deficit of $17.7 million. It got even worse, many say, in 1996, although financial figures under the privatized Camino Healthcare system were just not available . Hence, one of the major problems with the IDS: a lack of public accountability.

ortunate for us, David did slay Goliath and the five-member board dismantled Camino Healthcare. But questions of the hospital's imminent death were frequent when the hospital became public again at the end of 1996.

Those questions in the 15 months since have been answered with positives. In its first 100 days, the new administration, led by new chief executive officer Richard Warren, earned nearly $6 million in the first 100 days of public control. This was after 24 consecutive monthly losses. Its statement of operations from June 29, 1997 to Feb. 7, 1998, shows a net income of nearly $16.8 million.

Improvements showed in more than just numbers. Contract negotiations with the hospital's nurses union, which had reached a bitter impasse with Camino Healthcare, turned amicable under the new administration and a new agreement was reached. Discussions of selling off equipment and other assets under Camino Heathcare, to recoup losses, have given way to plans for funding facilities and grounds improvements.

There is substantial cause for the optimism brimming at El Camino Hospital these days. We're happy to note that we were wrong about this hospital board. It really did save the day.