Hospital's future shaky

The answer is: They probably can't. Facing deadlines to build seismically safe hospitals by 2012, the race is on to see who can win the support of the public.

PAMF is proposing to build a brand new hospital with private funds from Sutter Health without tapping any tax dollars. Meanwhile, the Sequoia Healthcare District has been pressuring Catholic Healthcare West to provide more details on a plan that would rebuild the aging Sequoia Hospital for a cost of at least $150 million to tax payers.

PAMF's presentation wowed the crowd of hospital employees, residents and doctors. It rivaled a Hollywood production with a virtual tour of the facility that included impressive landscaping, a rooftop garden and whole floor devoted to women's care. PAMF representatives even displayed a detailed traditional model of the new facility.

PAMF manages three other facilities in Palo Alto and the South Bay. It also runs a 30-bed hospital in Santa Cruz. The new facility in San Carlos would accommodate 110 beds but more could be added, said PAMF president Dr. David Drunker, alluding to the fact that the facility could grow if Sequoia closed.

The foundation swooped in this summer and began holding what some consider "secret" meetings with district board members. PAMF then entered into a purchase agreement for the land at the northwest corner of the Highway 101 interchange at Holly Street in San Carlos. Just to be sure it had the deal for a new hospital sealed, PAMF also put down money on land along Highway 101 where the vacant Excite buildings stand.

Catholic Healthcare West pinpointed the Excite land for its new building but let the opportunity slip away just before PAMF stepped in. The landowner asked for a down payment to ensure the purchase. When the district didn't agree to pay half that, the property went back on the sales block in 72 hours, said Sequoia Hospital President Glenna Vaskelis.

CHW allocated $150 million toward a new hospital in December but doctors and district board members agree it's too little too late. About a year ago, CHW presented original plans to rebuild the hospital, but since then hasn't done enough to further the process, said board member Nappy McNaughton.

"Because of our relationship with them, we've been very reluctant to express our frustrations with CHW," said McNaughton.

The Sequoia Healthcare District has no authority on who can build a hospital in the district but it does control approximately $50 million and takes in $4 million in taxes each year. In 1996, the district partnered with CHW when the hospital was awash in red ink. The partnership allowed CHW to run the hospital and in return, the members of the district sit on the hospital's governing board.

If the district continues to refuse the proposal by CHW and the health care company decides not to build the hospital with private funds, Sequoia hospital could close forever. With the absences of the hospital, the district board loses all say in hospital decisions.

"It's the golden rule," said board President Art Faro. "If we don't put in any gold we don't get to rule."

Faro also said he wasn't heartbroken at the thought of eliminating the district and losing seats on a hospital board. He pointed out that well-run hospitals like Stanford Medical Center don't have elected officials sitting on their boards. In addition, District CEO Frank Gibson said there is "no legal obligation to anyone but the community."

Meanwhile, hospital staff is drawing the line and taking sides. Some strongly support keeping Sequoia open for job security and sentimental reasons. Others - such as the cardiovascular doctors - have already signed letters of intent to work with PAMF. Those same doctors are encouraging others to drop their ties with Sequoia and move to the new facility.

"The ground ain't Sequoia," said Dr. Vince Gaudiani. "We are Sequoia and we are going there."

Dana Yates can be reached by e-mail: dana@smdailyjournal.com or by phone: (650) 344-5200 ext. 106. What do you think of this story? Send a letter to the editor: letters@smdailyjournal.com.