Salinas (Calif.) Valley Memorial Healthcare System's steering group has submitted a recommendation advising the SVMHS board to end the affiliation process with Natividad Medical Center in Salinas.
The members of the steering group voted unanimously to recommend ending the process.
According to the release, if the board accepts the steering group recommendation and decides to end the affiliation process, the board will likely begin the process of hiring a permanent CEO and continue to operate as a standalone hospital while it addresses its cost structure issue. According to the release, while SVMHS achieves above-average clinical quality metrics, its future sustainability will depend upon finding parity with other California hospitals in pay scales, medical fees, supplies and equipment expenses.
SVMHS had been considering a proposal from Natividad Medical Center to merge the two hospitals and form a new Healthcare Authority. Natividad Medical Center was the only remaining potential partner for SVMHS after Nashville, Tenn.-based HCA backed out of the potential transaction in June.
"We very much appreciate the thoughtful proposal from Natividad Medical Center...While this particular proposal did not meet the needs of our organization at this point in time, we do believe that the future will require a community-wide collaborative effort to ensure quality healthcare in our region for years to come," said Jim Gattis, president of the SVMHS board and a member of the steering group, in the release.
SVMH began considering an affiliation early last year. Initially, there were 11 potential partners.
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The members of the steering group voted unanimously to recommend ending the process.
According to the release, if the board accepts the steering group recommendation and decides to end the affiliation process, the board will likely begin the process of hiring a permanent CEO and continue to operate as a standalone hospital while it addresses its cost structure issue. According to the release, while SVMHS achieves above-average clinical quality metrics, its future sustainability will depend upon finding parity with other California hospitals in pay scales, medical fees, supplies and equipment expenses.
SVMHS had been considering a proposal from Natividad Medical Center to merge the two hospitals and form a new Healthcare Authority. Natividad Medical Center was the only remaining potential partner for SVMHS after Nashville, Tenn.-based HCA backed out of the potential transaction in June.
"We very much appreciate the thoughtful proposal from Natividad Medical Center...While this particular proposal did not meet the needs of our organization at this point in time, we do believe that the future will require a community-wide collaborative effort to ensure quality healthcare in our region for years to come," said Jim Gattis, president of the SVMHS board and a member of the steering group, in the release.
SVMH began considering an affiliation early last year. Initially, there were 11 potential partners.
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Salinas Valley Memorial Board of Directors Meeting Ends Without Partner Decision