Alameda Health System and Alameda Hospital Sign Letter of Intent

ALAMEDA, Calif., June 19, 2013 (GLOBE NEWSWIRE) -- The Boards of Directors for Alameda Health System (AHS) and the City of Alameda Health Care District (Alameda Hospital) have jointly announced a Letter of Intent (LOI) to explore an affiliation between the two organizations. The affiliation would produce new benefits for the city of Alameda as well as for all residents of the broader area.

Under the proposed relationship, Alameda Hospital would join the growing network of AHS providers which currently include Fairmont Hospital, Highland Hospital, John George Psychiatric Hospital, San Leandro Hospital (proposed October 2013), and community-based wellness centers in Eastmont, Hayward, Highland, and Newark.

Alameda Hospital would retain its identity and maintain its Emergency Care Center. AHS would provide funding for facility improvement, new technology and state-mandated seismic upgrades that would ensure continuation of an acute care hospital serving the City of Alameda. The LOI calls for the Health Care District's Board to retain ownership of all assets and leases, including all parcel tax revenues, which would continue to be used exclusively for the operations and long term capital investments of Alameda Hospital.

The vision for this affiliation is to create a seamless patient experience, enhancing the quality and access of care delivered by a full system with a broader range of health care options for each individual patient. Alameda Hospital would benefit from more secure long-term financial sustainability generated by maximizing use of current surgical and acute bed capacity. Both parties plan to evaluate new services that might be offered at the 2070 Clinton Avenue campus.

At the June District Board meeting where the Letter of Intent was introduced, Alameda Hospital CEO, Deborah E. Stebbins said, "This affiliation will ensure Alamedans that this hospital will be here whenever we're needed. Our patients will be able to continue to see the quality doctors and nurses they've always enjoyed, and our employees will be able to continue working here. We are not planning for any service reductions or layoffs. In fact, if anything there will be more employment opportunities with the added volume of patients we are expecting."

AHS CEO, Wright Lassiter, commented, "We welcome Alameda Hospital into our growing network of providers who are focused on excellence in health care. We share a common goal to expand access, improve quality, and reduce the cost of health care for everyone in our community. This is A New Day for health care and a partnership with Alameda Hospital will further our goal to create a world-class patient and family-centered system of care for everyone."

The two organizations will have approximately 90 days to conduct due diligence, solicit input from the public and key constituents, and develop the details of the affiliation. This will result in a definitive agreement that if approved by each respective Board will outline the relationship, obligations, and expectations between AHS and Alameda Hospital.

A number of public forums are scheduled to present information about the potential affiliation and to gather community input, feedback and suggestions.

Additional public forums may be scheduled as needed through September 2013.

The Letter of Intent and related documents on the proposed affiliation can be found on the websites of both Alameda Hospital and Alameda Health System.

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