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Anaheim Hospital: “Reasons for Sale”

September 2nd, 2008, 8:00 am · 1 Comment · posted by Teri Sforza, Register staff writer

heart_team_ammc_top_left1.jpg(Third of three parts; read Part 1 and Part 2 first)

In 2005 and 2006, owner Memorial Health Services tried to figure out what do do with Anaheim Memorial Medical Center (AMMC). It reached these conclusions, according to the recent report from the Attorney General’s office:

  • AMMC’s service area has an increasingly unfavorable payer mix of patients and generally declining market conditions;
  • AMMC’s market share has been stagnant and is unlikely to grow in the face of powerful Orange County competitors that were already well underway with seismic retrofit and facility expansion plans;
  • AMMC’s poor financial performance is likely to further deteriorate without major capital investment, estimated to be at least $100 million over 10 years, including seismic, facility equipment and other capital improvements; and
  • MHS’s other hospital facilities also require major capital investment and the funding requirements of AMMC could jeopardize the system’s ability to complete other needed improvements.”

And some history on Anaheim Memorial Medical Center (and its foundation):

  • opened in 1958.
  • licensed for 223 beds.
  • offers services including emergency, obstetrics, neonatal intensive care and cardiac surgery, as well as other inpatient and outpatient services.
  • is owned by Memorial Health Services (headquartered at 17360 Brookhurst St., Fountain Valley), which also operates  Long Beach Memorial Medical Center, Miller Children’s Hospital in Long Beach, Orange Coast Memorial Medical Center in Fountain Valley and Saddleback Memorial Medical Centers in Laguna Hills and San Clemente.
  • Anaheim became an affiliate of MHS in 1995 when it was facing severe financial challenges.
  • In 1999, MHS subsequently acquired Martin Luther Hospital, which is one mile away, and closed it, consolidating services at Anaheim Memorial.
  • The Anaheim Memorial Foundation exists as a separate nonprofit corporation to raise funds for the Hospital’s capital projects and programs.
  • The Foundation’s Board consists of community members, including physicians and local business and community leaders.
  • The Foundation had total revenues, gains and other support of over $146,000 for the nine months ending on March 31, 2008.
  • It also had approximately $1.7 million in net assets as of March 31, 2008.
  • The Foundation is not included in the sale and has stated its intention to continue to operate with a mission to support community healthcare needs independently of the Hospital.

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Posted in: Charity checkupMoneyNonprofitsPublic health
 
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 One Comment

  • ocdoc says:

    The Memorial Care system is a joy to work around.
    The nurses at Memorial do great work.
    They are concerned about their patients.
    The executives at Memorial Hospitals are very professional and I enjoy working with them as well.
    The Memorial Care doctors have worked between competing practices to set up clinical guidelines that reflect the best practices in the community.

    It is important to note that hospital financial performance can be inversely related to the quality of care around the hospital.

    After all, if the patients are healthier, then they do not need to be hospitalized as much.

    So, if a hospital has lousy primary care around it, there will be increased use of the facility.

    Higher hospital revenue increases when the city utilizes the hospital more, which means that people in that area get more ill than other cities.

    Why does a Memorial not have filled up beds?

    May be instead of rewarding hospitals that are constantly full, they should think about rewarding doctors for keeping the citizens healthy?

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