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SPMH board releases letter outlining short and long-term plans

April 16, 2004
Santa Paula News

The board of Santa Paula Memorial Hospital ended their long silence on specific plans to reopen the now-shuttered Hospital on the Hill with the release of a letter outlining short- and long-term plans as well as call for the City Council to nominate three new SPMH trustees.

By Peggy KellySanta Paula TimesThe board of Santa Paula Memorial Hospital ended their long silence on specific plans to reopen the now-shuttered Hospital on the Hill with the release of a letter outlining short- and long-term plans as well as call for the City Council to nominate three new SPMH trustees.The letter from the SPMH board came just six days after the council met in a special session and announced they were aggressively moving forward with options for taking over the hospital and naming new trustees.The letter is in sharp contrast to testimony offered by hospital representatives who said during recent Santa Barbara bankruptcy court hearings that future plans only included the sale of the hilltop hospital property. The proceeds would be used to satisfy the approximate $9 million in debt and provide seed money for a new facility, according to combined testimony by Trustee Carol Burhoe and Gene Kaberline, the SPMH interim CEO.The board’s letter stated that proposals are soon expected from three operators who might reopen the hospital – closed on Dec. 19 - on an interim basis while long-term plans crafted.The letter also addresses the sale of the almost 30-acre hospital property: after the debts of the creditors are paid, leftover “substantial funds” would be used to create a new facility on the Highway 126 corridor, specifically on land owned by Limoneira Co.The SPMH board has been discussing the sale of the hospital property with “three reputable development companies” who have indicated “strong interest and are in agreement with our concept.” In order to properly evaluate the offers, the board is ordering an appraisal of the property based on its “highest and best” use.
SPMH trustees will not resign – the letter notes that their removal would not meet with the approval of the federal bankruptcy judge overseeing the hospital’s case - but the letter asked that the City Councils of Santa Paula and Fillmore suggest board nominations to fill three seats. An attempt at eminent domain - also being explored by Santa Paula City Attorney Karl Berger - would be lengthy and ultimately fail, as would creating a new nonprofit corporation to manage SPMH, issues that would also have to garner the approval of the bankruptcy judge, the letter notes.The SPMH board also asked that the cities of Santa Paula and Fillmore to appoint up to two representatives each, either council members or city staff, to attend hospital board meetings and any meetings or negotiations with potential partners.Vice Mayor Mary Ann Krause said the board’s outline of plans and suggestions are, “in my opinion, too little, too late. The time for those discussions was when the hospital realized it was struggling and the council and the ad hoc committee asked to participate with the hospital.”Krause was the chairwoman of the committee comprised of representatives from Santa Paula, Fillmore, Piru and the County of Ventura.The Ad Hoc Committee “asked to attend board meetings, asked to have an opportunity to nominate people to the board. . .that was 15 to 16 months ago. Now, things have changed so dramatically there is no point for the council to try to nominate people to the present board. I don’t really see what would be accomplished if council or city staff attended their board meetings now.”Philip Romney, chairman of the SPMH board, was out of town Thursday and unavailable for comment.