Sutter Health Donates San Leandro Hospital And Establishes Transition Fund In Historic Three-Way Deal

SAN LEANDRO, Calif., May 15, 2013 /PRNewswire/ -- Sutter Health officials announced Tuesday that they would donate San Leandro Hospital, its assets and equipment in a three-way agreement with Alameda County and Alameda Health System (formerly Alameda County Medical Center). The donation also comes with a $22 million cash subsidy from Sutter Health to help transition the hospital.

"Sutter Health's donation ensures that San Leandro Hospital remains an asset in the community," said David Bradley, president of the Sutter Health East Bay Region. "It also provides Alameda Health System and local health officials the flexibility to determine how to most effectively deliver health care services on this campus. We appreciate the leadership efforts of Supervisor Wilma Chan to bring all the parties together and help create a solution in the best interest of this community."

Added hospital president and CEO George Bischalaney, "The past few years of uncertainty have been challenging for all of us. We appreciate the patience of our employees and others in the community, as we worked hard behind the scenes seeking the best outcome for all parties."

The transaction deadline is July 2013, and all parties hope to complete all necessary regulatory approvals by October 2013. The donation comes with a $22 million cash subsidy to help sustain the hospital, along with the real estate, supplies and equipment. Of this $22 million, Sutter could utilize up to $6 million to subsidize operations through the October transfer. 

Sutter Health officials worked closely on the agreement with Wright Lassiter III, CEO of Alameda Health System; Alex Briscoe, director of the Alameda County Health Care Services Agency; and Alameda County Supervisor Wilma Chan.

At Tuesday's press conference in front of the hospital, both Lassiter and Chan applauded Sutter Health's donation of San Leandro Hospital.  Lassiter paid tribute to Sutter Health leadership as "a significant asset in my quest to negotiate an agreement for the county."  Previously, Chan called the agreement "a win-win for all parties" and commended Sutter Health "for their generous donation and collaboration at the negotiating table."

Tuesday's announcement concludes a five-year journey to reposition the struggling hospital as an asset in the community. The 93-bed hospital will require additional investments to remain viable. The hospital has been operating at a deficit for the past several years.

The Sutter East Bay Region is part of Sutter Health, and includes Alta Bates Summit, Eden and Sutter Delta medical centers, and the Sutter East Bay Medical Foundation. Sutter Health is a network of not-for-profit hospitals and physician organizations that share resources and expertise to advance health care quality. Providing personalized care in more than 100 communities throughout Northern California, our network is a regional leader in cardiac care, cancer treatment, orthopedics, obstetrics and newborn intensive care, and is a pioneer in advanced patient safety technology. For more information, visit www.suttereastbay.org.

SOURCE Sutter Health East Bay Region