PPH should get out of hospital business
By: JIM VANDER SPEK - Commentary: | ∞
The Palomar Pomerado Hospital facilities' master plan is in shambles. When Proposition BB was passed, voters thought it would result in major improvements to existing facilities and the construction of an additional new medical center and other facilities.
Most of the promises are no longer on the table. Instead, the only remaining part of the plan that is still firm is to build merely one new hospital, and even that on a much smaller scale than they originally promised. This determination to build in the Escondido Regional Technology Center comes from angst. Palomar Pomerado fears that if they do not build it, Kaiser Permanente will build its own hospital, providing unwelcome competition nearby.
Surely, there are better ways to spend limited taxpayer funds.
For example, why not design the new hospital that is planned for the ERTC site in Escondido in such a way that it can be turned over completely to Kaiser? That way, Kaiser will get what they need and the money saved or generated could go to the other pressing needs that are being shelved.
The obvious result of such a change would be that PPH would need to attract more of its own patients. For example, the large Penn-Elm Medical Group recently dropped its affiliation with PPH so that its patients now use other hospitals. As it stands, Kaiser is providing about a third of the Escondido hospital's patients. PPH cannot stand alone based on its own clientele.
This begs the obvious question: If customers are voting with their feet to go somewhere else, maybe someone else should take PPH's place?
The covert, disruptive agreement with Kaiser shows that PPH will go to great lengths to reduce competition. This despite abundant evidence that increased competition is better, not worse. Communities like northern Riverside County and the Las Vegas area are much better served because there are numerous hospitals competing for patients and doctors.
A good case can be made that PPH, with its withering amount of goodwill, should get out of the business of operating hospitals entirely. The Grossmont Hospital District came to this conclusion years ago and instead contracted with Sharp. Voters in that district overwhelmingly voted for an improvement bond and are well on their way to meeting their facility goals, without controversy. A fresh new player stepping into the downtown Escondido facility would attract the many local patients who presently travel south to secure the quality that they demand.
This would also free the feeble PPH board from dealing with its intractable operational problems. Like other publicly elected boards, it is ill-suited to compete successfully in the brutal business of health care.
-- Jim Vander Spek is a resident of Escondido. He owns commercial property in downtown Escondido.
More Stories
Advertisement
Fool on the Hill wrote on Feb 27, 2008 3:57 AM:I agree with Jim's analysis of the current situation. If this were up for a public vote on which healthcare organization should take over for PPH, my vote would be for Scripps. Kaiser is part of the problem and not the solution. Also the hospital distict is too large. We would all be better served if PPH was divided into manageable segments. The status quo is a no go.
Smitty wrote on Feb 27, 2008 2:38 PM:Just more sour grapes from Jim. We don't all believe what you write nor agree with you. Some of us appreciate the great care that the staff of PPH facilities provide everyday. Many of us don't want to tear it down like you do Jim. Consider us the silent majority.
Right Prescription wrote on Feb 27, 2008 2:43 PM:PPH is in the red on its operations this quarter. Managers are starting to squeeze the turnip!
Glad Somebody's open minded here wrote on Feb 27, 2008 2:46 PM:Mr. Vanderspek gives a good solution to what will become a healthcare millstone around our necks for decades due to the way PPH System is run now. Leave healthcare management to the real professionals, especialy those who've shown the ability to perform well.
Disband PPH wrote on Feb 27, 2008 5:00 PM:I would like to see PPH disbanded, rather than have an unnatural mix of government and private healthcare like there is with Grossmont Hospital. PPH is an artifact of history from a time when the district was mostly rural. After WWII, landowners were made to subsidize healthcare in the district's main small town. The district has grown way past that stage and now PPH is not needed. Unfortunately, government entities, once created, are virtually impossible to disband.
PPH The Property Tax Hog wrote on Feb 27, 2008 5:02 PM:PPH gets over $20 million a year in property taxes of which $13.5 million is from pre-Prop 13 allocations, and about $8 million is from Prop BB.
Real Estate Crash! wrote on Feb 27, 2008 5:09 PM:PPH property tax gravy train may be drying up! In much of Escondido, real estate prices are dropping at record rates. Today's front page article is behind the curve! www.nctimes.com/articles/2008/02/27/news/top_stories/1_03_072_26_08.txt
Memory Lane wrote on Feb 27, 2008 5:14 PM:Three years ago, PPH Boardmember Nancy Bassett wrote the following: 'Fact 2: There is a known project cost. The total is $753 million; . . .Fact 3: There is reason why the hospital can't stay where it is. Independent seismic experts, whose work was necessitated by a state mandate, say Palomar can't withstand the minimum 6.0 earthquake, and it's actually cheaper to build a new facility, including the cost of land, than to retrofit and rebuild.'
www.nctimes.com/articles/2004/10/29/opinion/commentary/20_56_5410_28_04.txt Looks like Nancy's 'facts' were mere WISHES.
FRED wrote on Feb 27, 2008 5:23 PM:As a Kaiser member I prefer that we stay away from PPH. Kaiser should develop their own system. I don't want to be a patient of PPH. Kaiser does a better job.
Secret Kaiser Agreement wrote on Feb 27, 2008 10:22 PM:PPH told Wall Street, 'After the District [PPH] completes and opens the new Palomar Medical Center Campus, the District will be required to provide Kasier a guaranteed hospital bed capacity. If the District fails to provide the guaranteed hospital beds to Kaiser as needed, the District must provide alternative hospitalization at the Pomerado Hospital or at its own expense, or Kaiser may terminate the Kaiser Agreement and/or seek to revisit its terms. After the opening of the new PMC hospital, Kaiser will be required to make certain fixed payments to the District.' Quite some tradesecret! Really it is merely a political secret kept from Main Street. PPH should come on down to Main Street and tell the community what PPH is telling Wall Street.
Secret Kaiser Agreement II wrote on Feb 27, 2008 10:24 PM:From PPH Meeting Packet in Jan 2004: Hospital Services Agreement between Kaiser Foundation Hospitals and PPH. Background: The Agreement is the culmination of ongoing discussions for a long-term hospital services agreement with Kaiser, and the resultant capacity required to meet the needs of the agreement. The Agreement achieves the key strategies, expected benefits, and resolution to key issues ona long-term basis. Notably, they include: - Predictability and consistency of our relationship with Kaiser through a minimum period until 2020 Additionally, the agreement provides for five-year renewal penods; - Financial stability and predictability of the reimbursement through 2020 and levels consistent—including future inflationary and cost adjustments—with the current contract;- Better assurance of adequate bed and supporting services capacities through the building of additional beds funded by Kaiser on a pro-rata basis. The Agreement will provide for the provision of hospital services to members of Kaiser Health Plan to assure adequate health services to the communities of the District. Budget Impact: Patient care reimbursement rates result in net patient revenues consistent with budgeted revenues. Fixed revenues for facilities consistent with anticipated project costs. Staff Recommendation: Management recommends approval of the Agreement. It is a key component of our strategic focus and achievement of our facilities plan. Approval will enable management to execute the final form Agreement.
Rat wrote on Feb 28, 2008 3:55 AM:Why is a public hospital disttict making secret agreements such as this with a private company? I'm a Scripps patient and I question the legality of this. I've used Kaiser and their service is abysmal. Some hard questions need to be asked about this whole convoluted mess. My tax money is being squandered.
First name only. Comments including last names, contact addresses, e-mail addresses or phone numbers will be deleted. Attempts to misrepresent your identity or impersonate any person will not be approved. All comments are screened before they appear online, so please keep them brief. Comments reflect the views of those commenting and not necessarily those of the North County Times or its staff writers. Click here to view additional comment policies.
Today's Stories
Advertisement