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Published on 12/22/1999 All articles from this issue

El Camino Hospital raises pension payments, adds employee mental health services

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By Leslie K. Martin / Town Crier Staff Writer

The El Camino Hospital board voted unanimously, at its Dec. 8 meeting, to approve pension plan increases, to decrease the malpractice liability account and to approve financing to extend a mental health assistance program. The hospital district board approved the hospital's quarterly financial report at its meeting later that evening.

The year-to-date district statement of operations through the fourth quarter shows a net operating loss of $711,057, offset by the net income of nearly $3.032 million. Hospital officials said this was good news, since the budget estimated a loss of more than $1 million.

Management reviewed the current pension plan and decided it was below the standard of other Bay Area hospitals. Richard Warren, chief executive officer, suggested that the plan, which had not been modified since 1995, be upgraded and that excesses in the current pension trust fund be used to improve pension benefits for participating employees.

For affected employees, the changes mean that company contributions per employee will increase 2 percent. And for employees who make 403(b) payments, the matching employer payments will also increase 2 percent.

Warren also recommended an adjustment to a hospital fund established as a safeguard to pay the deductible in the event of malpractice lawsuits. The board started the fund with $800,000 in 1989. With an additional deposit of $400,000 plus growing interest, the fund has grown to over $2.7 million. Warren moved, and the board passed the resolution, to reduce the fund to the $1.2 million suggested by standard accounting formulas. The excess $1.5 million will be transferred into general hospital reserves.

Under a 19-year-old program called Concern, hospital employees and valley clients may receive mental health services such as crisis, life-transition, elder care, trauma and substance abuse counseling. The board voted to approve the necessary capitalization requirements of $150,000 in order to comply with state Department of Corporation regulations for capitated payment plans.

In other news, staff members showed district board members a preview of the hospital's long-awaited Web site, which is currently under construction.

The El Camino Hospital Board next meets on Jan 12. The El Camino Hospital District board next meets on March 8. All meetings are held at El Camino Hospital, 2500 Grant Road, Mountain View, in meeting rooms near the cafeteria on the ground floor.