CA Dept. of Public Health response

QUESTION 1: Can the California Department of Public Health (CDPH) confirm whether or not MemorialCare has suspended their license for Long Beach Community Hospital?

CDPH RESPONSE: Yes, CDPH received the hospital request dated June 27, 2018 to suspend the license, effective July 3, 2018.

QUESTION 2: If so, what would happen next with the hospital...?

CDPH RESPONSE: The current hospital licensee will close its operations on July 3, 2018; however, there are negotiations with a prospective operator to submit a Change of Ownership request to take over hospital operations as soon as possible. Once the new operator is ready to reopen the facility, CDPH will conduct an initial licensing survey to determine compliance with state regulations.

City of Long Beach release (June 29, 2018, 3:48 p.m.)

The City of Long Beach conducted a week of progressively positive meetings with the California Department of Public Health (CDPH), Office of Statewide Hospital Planning and Development (OSHPD), MemorialCare, and Molina, Wu, Network, LLC (MWN) in an effort to facilitate the transition of Community Hospital to a new operator after July 3. MemorialCare and the City have identified a process by which the existing hospital license may be placed in "suspense" so that the facility is recognized as a "continuously licensed" hospital by the State of California.

"It's encouraging that all stakeholders involved in Community Hospital are working collaboratively with the City in order to create a smoother transition to a new operator," said Mayor Robert Garcia. "MemorialCare put their license in suspense, which is helpful to the process, and we continue working quickly to try to minimize the gap in service and get the new operator up and running."

On June 27, the City confirmed MemorialCare formally submitted a letter to CDPH requesting a "suspension" of the hospital license after July 3 through the time a new hospital operator obtains all the requisite approvals to re-open the facility. The City will continue to work with its chosen operator to address the seismic issues, obtain financing and secure required regulatory approvals for the transition of Community Hospital.

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On June 19, the City Council voted 8-0 (Austin absent) to authorize the City to negotiate a potential, complex work-around that would ultimately let a new entity -- Molina-Wu-Network, LLC -- operate a reconfigured, retrofitted and smaller version of Community Hospital (roughly 30-40 beds instead of its licensed 158 bed capacity, re-opened facility would include an ER) on its seismically challenged City-owned site.

During city staff's presentation, city staffer Keisler dropped a quiet bombshell -- not discussed publicly by the Mayor/Council -- indicating that negotiations with the Molina-Wu-Network, LLC entity would explore "city participation" -- a common euphemism generally pertaining to some type of taxpayer costs -- regarding seismic improvements.

Neither Mayor Garcia nor any Councilmember(s) sought details on the amount or type of "city participation" that the Council vote authorized city staff to negotiate.

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During the Council item, Mayor Garcia focused on the politically popular need to keep the hospital's ELB ER open. Dr. Mario Molina (a party in the new LLC entity) thanked the City for its efforts. A representative of the Community Hospital Foundation was then invited to the podium and read a letter announcing that its governing board [which includes Mayor Garcia's Chief of Staff Mark Taylor] had voted the night before to "support purchasing, at a cost of up to one million dollars to the extent allowed under CHLBF’s 501 (c) (3) tax exempt status, an indemnification insurance plan to insure MemorialCare against damages or losses as a result of actions related to the management or operation of Community Hospital Long Beach under the license issued to MemorialCare by the interim operator, MWN LLC."

The letter continued, "The CHLB Foundation Board has further agreed to explore conducting a capital campaign related to supporting hospital seismic needs. The Foundation met with the new operator and has engaged in discussions to develop a 'partnership' to support the hospital and the medical needs of the community."

Developing.

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