California Hospital for Low Income Patients Shuts its Doors
After posting several years in a row of deficits, in the tens of millions of dollars, Doctors Medical Center of San Pablo, California closed on April 21, 2015.
Doctors Medical Center, a public hospital, is operated by the West Contra Costa Healthcare District, and the district officials in the months following the closure are trying to promote the hospital for a potential sale.
Hospital Served Low Income Patients
The hospital, located in West County, primarily treated patients who are poor, of which there is a significant population in San Pablo.
There had been upwards of 80 patients that were being treated at Doctors Medical Center, on any given day, before the hospital closed.
Closure Followed Years of Financial Struggle
Contra Costa County Health Services supervisors have said that the county did not have sufficient funds to maintain the hospital staying open.
“The hospital, owned and operated by the West Contra Costa Healthcare District, has been running at a deficit of over $18 million per year,” said John Gioia, Contra Costa Supervisor.
Doctors Medical Center dealt with very few patients who had private insurance. As a result, the compensation that the hospital received from their cumulative patient list was much lower than they had desired. This point, and the fact that the hospital was not part of a large health care system which could’ve eased the situation, kept Doctors Medical Center in the red for years. This ultimately led to the hospital closing.
The hospital had filed for bankruptcy protection in 2006. At that time, the County was in the position to assist the hospital in getting back on its feet. These days, they are unable to help out again.
Lack of Federal Reimbursement is Blamed
Some officials that work for Contra Costa County Health Services have blamed the federal government for the closing of Doctors Medical Center.
“The closure of Doctors Medical Center is a reflection of the failure of the federal government to adequately reimburse providers of Medicare and Medi-Cal services,” noted Gioia. “Eighty-percent of Doctors’ patients relied on these government plans, and the federal reimbursement rate didn’t cover the cost of providing services.”
Gioia added that this government trend has not only affected Doctors Medical Center, but many hospitals throughout the nation. These hospitals, he claims, are closing for the same reason.
No Buyer in Sight
“While someone could theoretically still offer to buy and operate the hospital,” said Kathy White, interim CEO of Doctors Medical Center, “no realistic offer was on the table.”
White added that the license that the hospital employs to operate its facilities expires in October. There will also be a license suspension for an another year until October 2016.