How You Can Help – Save Eden Health District

Two bills, AB 2737 (Asm. Bonta-D) and AB 2471 (Asm. Quirk-D), were recently introduced that would rid the community of vital healthcare services for you and your family.

Eden Health District opposes these bills:

1) The Legislation eliminates Eden Health District, created by the voters of the District in 1948, without a vote from Districts residents.

2) The Legislation does NOT clearly state where the proceeds will go.

3) The Legislation creates loss of community healthcare benefits in future years, trading off renewing benefits of $2-2.5 million EVERY YEAR for a one-time fixed amount estimated to be between $15-$20 million. In 7 to 10 years, Eden Health District will have generated the $15-$20 million that a one-time liquidation might yield.

4) The Legislation eliminates a locally elected board.

5) The Legislation eliminates an efficient administration with 12-14% overhead, and substitutes the County or another government agency with much higher overhead, salaries and benefits.

Here’s what Assembly Members Bonta and Quirk won’t tell you about Eden Health District’s effectiveness in servicing the health needs of the community:

1) Eden Health District, established by voters in 1948, has been serving the community’s residents for nearly 70 years, and it has strong plans to continue providing quality healthcare for years to come.

2) The District manages three medical office buildings, in addition to the Eden Health District office operations. The District’s overhead to provide healthcare services in three medical buildings was 12-14% of expenses in fiscal years 2014 and 2015. Salaries and benefits were 5% of total expenses. Click here for financials.

3) Eden Health District serves hundreds of residents in the community each year who otherwise would not have had access to healthcare services. In 2015 alone, 500-700 District residents were served and $500,000 in grants were given.

4) Within the District there are four hospitals, six community clinics and several health programs directly serving the community that Eden Health District supports.

5) Eden Health District goes to bat for the residents of the community – especially when the stakes are high. At the urging of the community, Eden Health District refused to let Sutter Health purchase San Leandro Hospital because residents of the city of San Leandro feared the Hospital would be closed down and converted to other services. Eden Health District filed a lawsuit on behalf of the community.

Historical background on the 2009 lawsuit:

In 2008, Eden Health District reached an agreement with Sutter Health to extend and amend the lease for San Leandro Hospital, an acute general hospital with emergency services, until July 2009.

In 2009, when Sutter Health exercised its right to purchase San Leandro Hospital under the lease agreement, the residents of San Leandro did not want Sutter Health to close San Leandro Hospital, so the District answered the outcry from the community and refused to sell. This challenged the lease agreement. More than 250 community members, including the staff, physicians and patients of San Leandro Hospital, the leaders of the City of San Leandro, the Board of Supervisors of Alameda and State Senator Ellen Corbett attended each of the three meetings held. Unfortunately, the District and the community lost the suit.

Eden Health District turned over the title of San Leandro Hospital, a $25 million asset, to Sutter Health in September 2012. The lawsuit alone cost the District $5 million in legal and consulting fees.

Losing the lawsuit cost Eden Health District nearly $20 million in damages and has occupied its time and resources for five years from 2010 to June 2015, when the Eden Health District’s petition to pay the $20 million over 10 years was approved by the Alameda County Superior Court. This was payment for Sutter’s losses in Emergency Services at San Leandro Hospital for the two years of the lawsuit.

Eden Health District’s total expenditures to keep San Leandro Hospital open was $50 million out of a total of $100 million in assets – that means more than half of Eden’s assets went to serve less than 23% of the District!

Sutter filed a statement in court stating they could close San Leandro Hospital as early as March 31, 2010. Sutter Health was forced to keep the hospital open until April 2012 until the lawsuit settled.

Eden Health District efforts are what kept San Leandro Hospital open.

What Eden Health District is doing to help you and the community, now and in the future:

• Each year, the Eden Health District assesses community health needs to address needs that are not being met. It assigns funding priorities to these areas of need.

• Funds are allocated by the District to organizations that best serve those needs, such as Davis Street Family Resource Center, Tiburcio Vasquez Health Care Center and other organizations. Click here to see a complete list.

• When identified priorities are not being met, Eden Health District provides the service directly. For example, the District provided community education on diabetes management, and a seminar on mental health in March 2016. A series of community health education seminars are planned, such as the Diabetes Academy in July, August and September of 2016 and additional programs through 2017.

• Over the next ten years, Eden Health District will commit 75% of its resources, not including property assets, to fund community health needs. For 8 years, $2 million is dedicated to pay the Sutter Health lawsuit damages. During that 8 year period $500,000-750,000 per year will go to community services. After the lawsuit damages are paid, the District will spend the entire amount of $2.5-2.75 million on community services.

It’s time for YOU to help save Eden Health District. Do not let your vote be taken away. Raise your voice by contacting Assembly Members Bonta and Quirk telling them you will not have your healthcare services taken away.

Assembly Member Rob Bonta
State Capitol
P.O. Box 942849
Sacramento, CA 94249-0018
Tel: (916) 319-2018
Contact Assembly Member Bonta via Website

Assembly Member Bill Quirk
State Capitol
P.O. Box 942849
Sacramento, CA 94249-0020
Tel: (916) 319-2020
Contact Assembly Member Quirk via Website

 

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Write to us today to express your support of the District and the services and funding it provides to non-profit agencies in San Leandro, San Lorenzo, Castro Valley, Hayward, and surrounding areas.

Contact us:

Mr. Dev Mahadevan
Chief Executive Officer
Eden Health District
20400 Lake Chabot Road, Suite 303
Castro Valley, CA 94546
Tel: (510) 538-2031
or click here to send us an email.