The Sequoia Hospital Re-building Project

In January 2007, the District Board began a series of negotiations with Catholic Healthcare West (CHW) the purpose of coming to an agreement to re-build Sequoia Hospital to meet the seismic requirements of SB 1953 which requires all California hospitals to meet certain standards of construction in the event of earthquakes.

The negotiations continued until an agreement was reached on the terms under which the District, Sequoia Healthcare Services (SHS), which operates Sequoia Hospital and (CHW), would share in the costs of re-building the Hospital for the future in October 2007.

The District then held a series of meetings inviting public input and the Board of Directors voted unanimously to approve the agreement on November 30, 2007. The entire transaction closed on December 7, 2007. Under this agreement, the Hospital would be rebuilt for approximately $240 million. The District contributed land, buildings, real property and cash worth approximately $62 million towards a total commitment of $75 million. SHS and CHW would contribute $75 million each and the Sequoia Hospital Foundation would raise the remaining $15 million from donations. CHW has agreed to assume any cost overruns for the project. Also, as part of the agreement in future years, depending on the Hospital’s success, the Healthcare District will receive a portion of the Hospital’s net operating revenues. These funds, along with the tax revenues the District receives will be used to meet and improve the healthcare needs of our constituents. For further information please click on the following link to District board meetings.

The District will no longer be actively involved in the governance of Sequoia Hospital and its operations. However, the Hospital is required to provide hospital and healthcare services to the residents of the District. The District will continue to have a role in monitoring that services provided to the community continue without substantial change, in the future.

The District is embarking on a strategic planning process to determine what other healthcare services it can directly or indirectly provide, which are not currently being provided in an adequate manner within the District. The District already provides community services outside the hospital setting.