With the formal approval of California Attorney General Kamala Harris on May 18, Lodi Health, the parent company of Lodi Memorial Hospital in North-Central California, finalizes its affiliation with Adventist Health. With the affiliation approved, Adventist Health will assume governance of Lodi Memorial, and will provide some $100 million in capital improvements over the next thirteen years to Lodi Memorial for medical technology upgrades and compliance with state regulations under the Affordable Care Act.
As reported in December 2014, the acquisition two years in the making, will expand Adventist Health's influence in San Joaquin County where the health system has thus far not had a presence.
Lodi News-Sentinel reports that in her approval of the affiliation, Harris made several stipulations:
Lodi must maintain at least 24 emergency treatment stations, eight acute rehabilitation beds, its cardiac unit, as well as obstetric and adult day care services for the next five years. Camp Hutchins, a professional child care and preschool for children three to five years of age will remain open, as will the Lodi Memorial West Fitness Center.
Adventist Health is required to donate $2 million to Lodi's hospital foundation, the Sentinel notes, and the foundation’s board will determine how best to use the money to support Lodi and its mission.
Additionally, for five years from the agreement’s closing date, Lodi Health shall either operate the clinics below with the same types and/or levels of services currently provided in the same location or within five miles of their current location; operate them through the Adventist Health Physicians Network; or sell them and require the purchase to operate the clinics with the same types and/or levels of services currently provided in the same location or within five miles of their current location:
• Ione Family Care, located in Ione • West Family Care, West Pediatric Care, West Prenatal Care and West Wound and Hyperbaric Care, all located at 2415 W. Vine St. • Millsbridge Family Care, 1901 W. Kettleman Lane • Plaza Surgical Care, 999 S. Fairmont Ave. • Trinity Family and Specialty Care, 10200 Trinity Parkway, Stockton • Vine Specialty Care, 1235 W. Vine St. • Galt Family and Prenatal Care, 387 Civic Drive, Galt
The decision from the Attorney General's office was expected on May 11, but a one-week extension was granted in order for Harris to issue a decision.
Jared Wright is Managing Editor of SpectrumMagazine.org.
This is a companion discussion topic for the original entry at http://spectrummagazine.org/node/6823