Community Medical Center Long Beach (Calif.), which closed July 3, is on track to reopen after city council members approved an interim lease and tentative operating agreement March 12, according to local television station NBC4.
The agreement comes after months of negotiations between the hospital's operator, Molina, Wu, Network, and the city of Long Beach. The two parties had been in exclusive negotiations since June over the lease agreement for Community Medical Center's property. A key sticking point that delayed an agreement surrounded who will pay to retrofit the hospital to meet California's seismic standards.
Under the new agreement, the network and city will jointly operate the hospital as a public-private partnership, according to NBC4.
Brandon Dowling, communications director of Pacific6 Enterprises, which is part of the network, told NBC4 that MWN will provide up to $25 million in initial costs to retrofit the hospital so it can reopen. The city also agreed to pay up to $25 million.
Mr. Dowling said the network has also agreed to pay up to an additional $40 million for deferred maintenance, necessary equipment, operating capital and any additional seismic retrofit costs.
Community Medical Center is expected to reopen with about 200 employees. It will feature a full-service emergency room, outpatient surgery department, radiology services, a behavioral health unit and a gastrointestinal lab.
Mr. Dowling said the network plans to hire many staff who previously worked at the site.
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