Sequoia Healthcare District Approves Terms for Sequoia Hospital Rebuild

Board Approval Permits District Participation in Collaborative Financing Arrangement, Allowing $240 Million Rebuild of Sequoia Hospital Without Additional Costs to District Residents

In a Special Meeting held Friday afternoon, members of the Sequoia Healthcare District Board of Directors unanimously voted to approve the terms of an agreement providing for the modernization, expansion and state-mandated seismic retrofit of Sequoia Hospital. The agreement requires that Catholic Healthcare West (CHW), the hospital provider that has managed Sequoia Hospital since obtaining District voter-approved control in 1996, take full responsibility for the Hospital. In addition, it ensures that Sequoia Hospital will remain open throughout the rebuilding process and that day-to-day operations at the Hospital will remain unchanged.

Although general terms of this agreement have been public since late August, the final version has been under negotiation for the past three months. The District and CHW made efforts to provide information to residents and solicit public comment throughout the negotiation process. Community forums and public Board meetings were held and information was communicated through advertisements, the District website, the local media and a letter mailed to all District residents.

As stated in the approved agreement, Sequoia Hospital’s projected $240 million rebuilding cost would be met by a collaborative financing arrangement that calls for $75 million funded by SHD, $75 million from CHW, $75 million from Sequoia Hospital, and $15 million from philanthropic contributions raised by Sequoia Hospital Foundation. If more than $240 million is required to complete the project, CHW will provide those funds. Rebuilding plans for Sequoia Hospital include a new four-story acute care pavilion, seismic safety reinforcement, state-of-the-art medical facilities, 167 beds, a medical office building and parking garage. Once the rebuild is completed, the agreement ensures that the District will share in Sequoia Hospital’s profits, provided that certain benchmarks are attained.

“This arrangement is the best possible way to satisfy the state’s seismic requirements. Fortunately, we have been able, through intelligent investments, to fund this necessary construction without additional costs to District residents,” said District Board president Kathleen Kane. “This agreement, which has been carefully vetted by legal counsel and financial experts representing both the District and CHW, ensures that Sequoia Hospital will provide first-class healthcare here for many years to come.”

“This agreement between the District and CHW affords us the opportunity to continue providing excellent, compassionate healthcare to the communities we serve,” said Glenna Vaskelis, president of Sequoia Hospital. “We are delighted to continue our partnership with the District in many ways, most notably the nursing school program at Cañada College. We look forward to providing award-winning health care for generations to come.”

“We believe that both the Hospital and District-funded community healthcare will benefit from this innovative arrangement,” noted Kane. “In addition to the Hospital improvements, the District’s profit-sharing plan with CHW will help us expand existing District initiatives, such as public access to defibrillators through the District’s HeartSafe Program, and implement new programs to support local wellness.”

The rebuilding plans received approval from the Redwood City Planning Commission in September and approval from the Redwood City Council in August. Additional information on the agreement is available at www.sequoiahealthcaredistrict.com.

About Sequoia Healthcare District

Headquartered in Redwood City, Sequoia Healthcare District identifies local healthcare needs and collaboratively develops solutions. District tax revenues are used for innovative programs and activities to achieve health, wellness and disease prevention in southern San Mateo County. Communities in the District include Redwood City, San Carlos, Belmont, Menlo Park, Woodside, Atherton and Portola Valley. For more information, please visit www.sequoiahealthcaredistrict.com.

About Catholic Healthcare West

Catholic Healthcare West (CHW) is the eighth largest hospital system in the nation and the largest not-for-profit hospital provider in the West. Founded in 1986, the CHW network of more than 8,500 physicians and approximately 50,000 employees serve a population spanning 22 million people at 42 hospitals across California, Arizona, and Nevada. CHW is committed to delivering compassionate, high-quality, affordable healthcare services with special attention to the poor and underserved. In 2006, CHW provided $803 million in charity care, community benefits, and unreimbursed patient care. For more information, please visit our website at www.chwHEALTH.org.

About Sequoia Hospital

Sequoia Hospital is an accredited, not-for-profit community hospital providing innovative and exceptional healthcare to Bay Area residents. Sequoia, ranked among the top 5 percent of hospitals nationwide, is a recipient of the 2007 Distinguished Hospital Award for Clinical ExcellenceTM, based on a study issued by HealthGrades, the nation’s leading independent healthcare ratings company. Offering a full range of medical, surgical and specialty programs, Sequoia also ranks in the top percentile of hospitals nationwide for patient satisfaction. “Best in California for Overall Cardiac Services” in 2007 is another HealthGrades rating for Sequoia Hospital, which also received the HealthGrades 2007 Cardiac Care Excellence Award. Sequoia is the only hospital in Northern California to receive the award. To learn more, please visit www.SequoiaHospital.org.

Contacts

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