Health district OKs lease with St. Joseph

June 21, 2006

By DAN JOHNSON
ARGUS-COURIER STAFF

At times, it seemed as if the process would never end.

But on Thursday, after a year filled with extensive discussion and deliberation, the board of directors of the Petaluma Health Care District finalized its decision for Santa Rosa Memorial/Alliance Hospital Services to continue managing operations at Petaluma Valley Hospital through 2016.

"This marks the end of the due diligence process, which has helped us to learn a great deal about the health-care needs of the Petaluma community," said Daymon Doss, CEO of the PHCD.

The PHCD board had the legal right to discontinue the 20-year lease this year, and on March 23 President Josephine Thornton sent a letter to Sister Carol Marie Kelber, chairperson of the SRM/Alliance board of trustees, confirming its intention to maintain it. The SRM/Alliance board welcomed the decision, but added that it wanted to draft its own letter outlining its hopes and concerns.

The PHCD received the letter, written by George Perez, chief executive officer for St. Joseph Health System of Sonoma County, on June 3. He emphasized the importance of funding capital improvements, partially through a General Obligation Bond, at Petaluma Valley Hospital.

In her letter, Thornton requested, among other things, assurance that two community members constantly will be on the hospital's board of directors; immediate availability of epidural services; greater insurance coverage of services provided by specialty physicians and a larger selection of local insurance plans; and a strong, collaborative relationship between the Sonoma County Medical Group and Petaluma Valley Hospital to provide inpatient, outpatient and diagnostic services.

PHCD board members and SJHS expressed optimism that they will be able to navigate through financially difficult times at Petaluma Valley Hospital together, but many challenges loom.

"We've agreed on what outcome we want, but haven't agreed on how it will happen," Doss said.