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HomeMy WebLinkAboutItem 3.1 Valley Memorial Hospital Presentation (2) 040 CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 25 , 1985 SUBJECT Presentation by Valley Memorial Hospital/Expansion Plans EXHIBITS ATTACHED Letter from Valley Memorial Hospital dated October 9, 1985 ; Information packets RECOMMENDATION Receive presentation FINANCIAL STATEMENT: None DESCRIPTION Mr. Gene Broadman, Chairman of the Board of Directors of Valley Memorial Hospital , has requested an opportunity to make a presentation to the City Council regarding Valley Memorial Hospital ' s future plans for service delivery. ---------------------------------------------------------------------------- COPIES TO : Gene Broadman Robert Fish ITEM NO . . Valley Hospital Memorial BOARD OF DIRECTORS October 23, 1985 Dear Members, We, the Board of Directors of Valley Memorial Hospital, have just completed an exhaustive review of the hospital's development plan for the next decade. Paramount in our minds during this deliberation has been the requirement to retain all present services at our Livermore Hospital. Meeting this imperative and creating a plan to meet the health service needs of all communities in the hospital service area has been a huge task. Our efforts have been assisted by our cooperative study with John Muir Memorial Hospital and Alta Bates Corporation.' The Board is pleased to recommend a three-phase plan to enhance services in Livermore, and establish complementary services on the hospital property in Pleasanton. You will be asked to vote on Phase I of this plan in December 1985. Phase II and Phase III will be presented to you separately for approval. Over the next two months we will be sending you detailed information. We will also schedule several meetings so that you can personally discuss the proposal with us. If approved, Phase I will be pursued immediately in cooperation with John Muir Memorial Hospital and Alta Bates Corporation. This project's expected cost is $15 to 20 million to be shared by the Joint Venture Partners and will include the development of three new facilities in Pleasanton: • a Medical Office Building housing up to 40 physicians; • an Outpatient Center offering x-ray, laboratory, outpatient surgery, pharmacy, and other diagnostic services and; • a Behavorial Medicine Center providing inpatient and outpatient diagnoses and treatment for patients suffering from conditions such as chronic pain, substance abuse and stress-related conditions. Phase II of our plan will continue to expand our joint ventures with other hospitals to allow Valley Memorial to serve more residents of the Valley through new health insurance programs. In addition, further development of health care facilities is planned, including: • a Skilled Nursing Facility for patients who need nursing care but no longer require the level of care provided in the hospital; • an Extended Care Home for geriatric patients needing 24-hour care for long periods; • an Elderly Housing Complex providing a supportive environment for older patients who are able to live independently. This phase may be developed in Livermore and/or Pleasanton, but in no event will it decrease the services presently provided in Livermore. Phase III will build on our joint venture. relationships developed in earlier projects. Using a two-pronged approach, Phase III will: • completely remodel the Livermore Hospital to meet the demands of the 1990's, and • establish an acute inpatient hospital in Pleasanton to care for the increasing West Valley population. Phase III will not decrease the services presently provided in Livermore. 1111 East Stanley Boulevard • Livermore, California 94550 • (415)447-7000 Your Board of Directors has unanimously adopted this plan. We urge your careful study of the information which we will provide and ask for your approval to proceed with Phase I. Please call any or all of us with your questions. Our telephone numbers are listed for your convenience. Sincerely, r n. Gene Broadman 447-5982 Alice Nicolaisen 462-9599 Chairman . John Anderson 447-4686 Edwin Rundstrom 443-3262 Vice Chairman Arlyn Blackwell 422-2911 Helen Wagner 447-0408 Secretary/Treasurer Larry Bartelson 447-1114 Ted Wieskamp 422-8612 Arthur Hudgins 447-4239 Elwood C. Greist, M.D. 447-6400 Chief of Staff Richard Lutz, M.D. 443-4842 I Valleyll/lemorial Hospital An Open Letter to the Tri Valley Community: In order to continue to provide quality and accessible health care to the entire Tri Valley,the Board of Directors of Valley Memorial Hospital has just completed a review of the hospital's development plan for the next decade.Paramount in our minds during this deliberation has been the requirement to retain present services at the Livermore hospital.Meeting this imperative and creating a plan to meet the health service needs of all communities in the hospital service area has been a huge task.Our efforts have been assisted by our cooperative study with John Muir Memorial Hospital and Alta Bates Corporation. The Board is pleased to announce a three-phase plan to enhance services in Livermore,and develop new services on the hospital property in Pleasanton.The Valley Memorial Hospital membership will vote on Phase I of this plan in December 1985.Phase II and Phase III will be presented separately to the membership for approval. If approved,Phase I will be pursued immediately in cooperation with John Muir Memorial Hospital and Alta Bates Corporation.This project's expected cost is$15 to 20 million to be shared by the joint venture partners and will include the development of three new facilities in Pleasanton; • a Medical Office Building housing up to 40 physicians; • an Outpatient Center offering X-ray,laboratory,outpatient surgery,pharmacy,and other diagnostic services and; • a Behavioral Medicine Center providing inpatient and outpatient diagnoses and treatment for patients suffering from conditions such as chronic pain,substance abuse and stress-ielated conditions. Phase II of our plan will continue to expand our joint ventures with other hospitals to allow Valley Memorial to serve more residents of the Valley through new health insurance programs.In addition,further development of health care facilities is planned,including: • a Skilled Nursing Facility for patients who need nursing care but no longer require the level of care provided in the hospital; • an Extended Care Home for geriatric patients needing 24-hour care for long periods; • an Elderly Housing Complex providing a supportive environment for older patients who are able to live independently. This phase may be developed in Livermore and/or Pleasanton,but in no event will it decrease the services presently provided in Livermore. Phase III will build on our joint venture relationships developed in earlier projects.Using a two-pronged approach, Phase III will: • completely remodel the Livermore hospital to meet the demands of the 1999s and; • establish an acute Inpatient Hospital in Pleasanton to care for the increasing West Valley population. The Valley Memorial Hospital Board of Directors has unanimously adopted this plan.Over the next two months we will be scheduling several open meetings to provide you with in-depth information.We ask for your support in our efforts to implement this plan. Sincerely, Valley Memorial Hospital Board of Directors Gene Broadman Arthur Hudgins Helen Wagner Chairman John Anderson Richard Lutz,M.D. Ted Wieskamp Vice Chairman 4 //�/,� �&'M. Arlyn Blackwell Alicc Niculaisen Elwood C.Greist,M.D. Secretaryl7leasurer Chief of Staff Larry Bartelson Edwin Rundstrom Joint Venture Phase I Fact Sheet I . Services to be provided by Phase I development on the Pleasanton site: • Medical Office Building • Surgi-Center • X-Ray • Laboratory • Pharmacy • Behavioral Medicine Center II . Size of the three buildings to be built to house the services: • Medical Office Building - 45,000 square feet • Outpatient Center - 15, 000 square feet • Behaviorial Medicine Center - 30,000 square feet III . Project Cost : • Estimated cost for Phase I is $15 to 20 million IV. Estimated Time Table: • Work on the project is to begin as soon as the Valley Memorial Hospital membership approves Phase I of the plan and is expected to be completed in 18 months. This would target completion for the Summer ' 87. V. Relationship between the Joint Venture Partners: • The exact relationship between the Joint Venture partners has not been defined. It is expected that each of the Joint Venture Hospitals will assist in the financing of the project . The Joint Venture will be governed by representatives of each of the participating hospitals . Representation will be related to the financial contribution of each hospital . VI . Where: • Valley Memorial Hospital presently owns 20 acres at the corner of Santa Rita and West Las Positas in Pleasanton; 6. 5 acres are to be developed on the Pleasanton site in Phase I . VII . Who: • Valley Memorial Hospital , John Muir Memorial Hospital and Alta Bates Corporation • In addition, many services may be co-ventured between the hospitals and the Valley Memorial Hospital Medical Staff . Valley Memorial Hospital . Family of Services Cover the Entire Tri-Valley EXISTING PLANNED Phase II Intensive Care Unit Phase I Skilled Nursing Coronary Care Unit Medical Office Building Extended Care Emergency Room Surgi-Center Elderly Housing Crisis Intervention X-Ray Acute Medical/Surgical Laboratory Phase III Diagnostic Imaging Pharmacy Complete Remodeling Laboratory Behavioral Medicine of VMH, Livermore Pharmacy Acute Inpatient Hospital, Respiratory Care Pleasanton Physical Therapy Home Health Care Short Stay Surgery Home IV 1btal Health Program Cardiac Rehabilitation 10/21/85 Valley h emoria Hospit'i PHASE I PLEASANTON DEVELOPMENT 0 0 CD 0 Q a a a 8000 00 qC�7 0 0 b cO cO a Qo � a WEST LAS KAITAS BLVD- 1 Outpatient Center 15,000 square feet 2 Behavioral Medicine Center 30,000 square feet 3 Medical Office Building 45,000.square feet to/21/66 - I�tiJl�!rrr ® ' MEMORIAL HOSPITAL October 15, 1985 Mr. Gene Broadman Chairman of the Board Valley Memorial Hospital 1111 E. Stanley Blvd. Livermore, CA 94550 Dear Gene: I would like .to confirm John Muir Hospital's sincere interest and commitment to Valley Memorial Hospital's effort to develop the Pleasanton site. We are com- mitted to mutually coordinate and develop new health facilities, services, programs and delivery systems appropriate to the Pleasanton site consistent with Valley's commitment to its community. Our commitment is made within the framework of delivering needed health care service to the Pleasanton, Dublin and San Ramon communities. We understand that the above objectives will require capital funding from each participant. John Muir is prepared to join with Valley, to meet its financial contribution to insure the success of this endeavor. We believe this venture offers the partners the opportunity to explore various alternatives to create a true system approach to health care delivery. We also feel a sense of urgency exists to establish a presence at the Pleasanton site. Such services as outpatient surgery, inpatient psychiatry, a diagnostic center and a medical office building need to be considered immediately for the Phase I development of this site. r We look forward to your response indicating a desire to mutually pursue this venture to develop the Pleasanton site. Sincerely Z J. dall Anderson P sident JKA/Ig� cc. ;ob Fish, Administrator, Valley Memorial Hospital David Seeley, President, Acute Care Affiliates A not-(or-profit community hospitai 1601 Ygnacio Valley Road • Walnut Creek, California 94598- (415) 939-3000 ��` � _� � S .'t.- •.Z - � :.ice oil AN HISTORICAL Operating expenses, the largest por- WHAT IS A PERSPECTIVE tion of which go toward salaries and NOT FOR-PROFIT benefits, are 94.2% of revenue HOSPITAL Opened in 1965 as a 150-bed com- . munity hospital, John Muir Memorial Patient Care Statistics-1984 Being a not-for-profit community hos Hospital was named for the famed Inpatient admissions 12,579 pital does not mean that John Muii naturalist - environmentalist with Emergency Service visits 26,458 fails to make a profit. Like any sounc whom it shares a common philoso- Births 1,535- business, the- hospital must realize a phy: An abiding concern for the pres- INSURANCE PLANS margin of profit. However, that profit ervation and quality of life. john Muir Hospital has negotiated a is reinvested into the corporation tc John Muir Hospital is a progressive number of contracts with health continually improve services •at 267-bed medical center offering med- maintenance and preferred provider than being distributed to sh, old, ical education and research, as well organizations which offer favorable ers. as patient care. rates to those enrolled. Additional John Muir Hospital operates from A Residency Program offering ad- information on these plans is availa- fees for services provided as well a: vanced training for internal medicine ble in Financial Services, 947-5234. from individual and corporate gifts physicians and The John Muir Cancer JOHN MUIR FOUNDATION Owned by the communities it serves and Aging Research Institute con- the hospital receives no tax funds. ducting asic and applied research in Foundation programs include the g IN LEADERSHIP ROLES cancer are medical center compo- Annual Fund, which attempts to cre- nents. ate a stable funding base for the hos- - Gerald C. Henry serves as Chairmar FACTS & FIGURES pital and the Major Gifts and Planned of the John Muir Hospital Board o Personnel/Payroll ' Giving programs aimed at increasing Trustees. The 16-member electec with 1,350 employees John Muir major philanthropic support. - Board serves without compensation. Hospital is one of the area's largest Friends wishing to consider creative, 1`'Kendall Anderson.is President/Chie employers.Approximately half of the tax-advantageous ways to support the Executive Officer. � s a employees are involved in nursing hospital's efforts are invited to con- Douglas M. Lange, M.D. s activity. Gross annual payroll (includ- tact the Foundation at (415) 932- Chief of the Medical Staff. 4455. lane Seeborg is President of the Johr ing benefits) for 1984 was $35.7 mil- Muir Hospital Auxiliary. lion. Salaries and fringe benefits con- Barbara Smith is Chairman of tho stitute 64% of the hospital's total john Muir Foundation. operating budget. ; Operating Budget More than $76 million in total operat- ing revenue is projected for 1985. I ACUTE Alta Bales 2855 Telegi Telephone CARE Hospital Suite 210 4151540-1800 Berkeley,CA Hospital 94705 AFFILIATES and He alth Cen ter October 15, 1985 Mr. Gene Broadman Chairman of the Board Valley Memorial Hospital 1111 East Stanley Blvd. Livermore, CA 94550 Dear Gene: Alta Bates Corporation remains strongly committed to the timely and rational development of health care services throughout the Tri-Valley area, and specifically in the communities of Livermore and Pleasanton. During the past four months of study and deliberation, through the Joint Venture Task Force, we have become increasingly convinced of the significance of this development for Valley Memorial Hospital . At the same time, we believe it is key to the type of integrated, voluntary health care financing and delivery system we all hope to see developed in our region. Based on the understanding that intial development of health care services at the Pleasanton site can and will proceed in a manner consistent with this larger goal , Alta Bates Corporation will support and participate with Valley Memorial Hospital in this development. We anticipate that further planning will identify the appropriate steps to be taken in this regard, and will define to the satisfaction of all concerned the roles, responsibilities and contributions of each participant. We look forward to continuing to work with Valley Memorial Hospital in this critical endeavor. Cordiall David Seeley President cc: Mr. Gerald Henry, Chairman of the Board, John Muir Hospital Mr. Joseph Tonascia, John Muir Hospital Mr. .Ken Anderson, Chief Executive Officer, John Muir Hospital Mr. Robert Fish, Chief Executive Officer, Valley Memorial Hospital Mr. Robert Eaneman, Chairman of the Board, Acute Care Affiliates . Mr. Ken Sargent, President, Alta Bates Corporation Mr. Hershel Shelton, Senior Vice President, Alta Bates Corporation Ms. Cynthia Crawford, Director of Planning, Acute Care Affiliates O531R P memuer W u,c A;ia Bale:Hi:'mn ALTA Alta Bates 2855 Telegraph Ave. Telephone BATES "Poration Suite 610 415/540-1448 Berkeley,CA 94705 ALTA BATES CORPORATION DESCRIPTIVE PROFILE The Corporation was organized in 1981 to provide for the development, coordination and allocation of resources for Alta Bates Hospital, founded in 1905, Herrick Hospital and Health Center, founded in 1904 and affiliated with the Corporation in 1984, and related organizations. Its objective is to achieve an integrated, comprehensive health care delivery system for residents of San Francisco's ,East Bay area. Located in Berkeley, the Corporation, which is a nonprofit corporation exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, is the parent holding company for a number of controlled subsidiaries. Except as set forth below, each of these organizations is a California nonprofit corporation, exempt from federal and state income taxation. The Corporation is governed by an I84nember Board of Directors which has delegated to the Chief Executive Officer (the President) the authority to operate the Corporation and to carry out the policies and programs approved by the Board. The principal subsidiaries which are part of the Corporation's health care delivery system are listed below. Acute Care Affiliates is a newly organized not-for-profit corporation which was established in 1984 to direct and coordinate the acute care hospitals. It includes: Alta Bates Hospital in Berkeley (317 beds) and Albany (39 beds). Alta Bates Foundation which receives and maintains gifts of money and property to be distributed to Alta Bales Hospital and other programs of the health system. The Foundation also sponsors community health education activities and fund-raising events. Herrick Hospital and Health Center (248 beds, which includes 30 skilled nursing facility beds). . Herrick Health Care Foundation which receives and maintains gifts of money and property to Herrick Hospital and Health Center and related programs of the hospital. Alta Bates Ambulatory Health Services, Inc. operates several outpatient health services that provide preventive, diagnostic or acute care outside the hospital setting. These services include: . Pathology Institute and Lazaroni Laboratories, Inc., clinical laboratories located in Berkeley and San Francisco, respectively, that perform tests for commercial clients as well as for hospitals. Lazaroni Labs, is a for-profit corporation. SPORTCARE, a comprehensive fitness evaluation and sports medicine center located in Berkeley, with satellite facilities in neighboring Orinda and San Francisco. Berkeley Visiting Nurse Association operates a hone health agency and provides nursing care and other health care services to patients in their hones. BVNA also provides a hospice service to patients. A subsidiary of Herrick Hospital, BVNA is managed by ABAHS. Guardian Foundation, Inc. operates skilled nursing facilities in the San Francisco Bay area. Guardian Foundation owns or leases a number of facilities and also manages the skilled nursing operations of other subsidiaries of the Corporation pursuant to management contracts. Horizon Retirement Centers, Inc. is a for-profit corporation 100% owned by Guardian Foundation, Inc. Horizon has a 501 interest in an out-of-state joint venture which operates three retirement centers. HEALS is an Individual Practice Association (IPA)4nodel Health Maintenance Organization (HMO) that provides comprehensive health benefits to groups under contract with their employers. Although not a subsidiary of the Corporation, HEALS was jointly developed by Alta Bates and Herrick Hospitals through members of their respective medical staffs, and qualified as an HMO by the federal government in 1981.The two hospitals are represented in 501 of the voting corporate membership of HEALS, and lay and medical staff of these institutions comprise over 65% of the Board of Directors of HEALS. AIMS