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San Diego County, CA June 3, 2014 Election
Proposition H
Grossmont Hospital Lease Continuation
Grossmont Healthcare District

Majority Approval Required

Pass: 56559 / 86.68% Yes votes ...... 8694 / 13.32% No votes

See Also: Index of all Propositions

Results as of Jun 24 9:29am, 100.0% of Precincts Reporting (292/292)
Information shown below: Yes/No Meaning | Impartial Analysis | Arguments |

In order to continue providing high quality, comprehensive medical and emergency healthcare services at Grossmont Hospital and to ensure that future hospital repairs and improvements are completed at no additional cost to taxpayers, shall the Grossmont Healthcare District enhance and extend the existing Lease Agreement with the nonprofit organization operated by Sharp HealthCare in accordance with Resolution No. 02-14 of the Grossmont Healthcare District Board of Directors adopted March 5, 2014?

Meaning of Voting Yes/No
A YES vote on this measure means:
A "yes" vote on this proposition would authorize the Grossmont Healthcare District to enter into the Extended Lease Agreement.

A NO vote on this measure means:
A "no" vote on the proposition would prevent the Grossmont Healthcare District from entering into the Extended Lease Agreement.

Impartial Analysis from County Counsel
Grossmont Healthcare District ("District") is a local healthcare district created pursuant to the California Health and Safety Code and is the owner of Grossmont Hospital ("Hospital"). Health and Safety Code Section 32126 allows the District to enter into a le·ase for the operation and maintenance of the Hospital for up to a maximum term of 30 years. In 1991 , the District entered into such a lease with the Grossmont Hospital Corporation ("GHC"), a California nonprofit public benefit corporation. GHC is a subsidiary of Sharp Healthcare. In 2006, Section 32126.3 was added to the Health and Safety Code and applies only to Grossmont Hospital. It allows the District to renegotiate or extend the 1991 Lease for up to an additional 30 year term, subject to the approval of a majority of the voters of the District.

District Representatives negotiated an extension of the 1991 Lease. The terms of the Lease extension were presented at four public meetings and public testimony was received by the District Board of Directors. On March 5, 2014, the Board of Directors passed Resolution No. 02-14 approving the Extended Lease Agreement, and Resolution No. 03-14 placing the Extended Lease Agreement on the June 2014 ballot. The Extended Lease A91reement provides that the term of the 1991 Lease will be extended from May 29, 2021, to May 29, 2051. GHC will continue to manage, operate, and maintain the Hospital in good condition. Major operational decisions will be made without discrimination against the interests of the community, and essential core services at the Hospital may not be terminated without the consent of the District Board. GHC is required to keep the Hospital adequately insured and provide periodic reports on the Hospital's financial and physical condition. GHC is responsible for the cost of all alterations to the Hospital, including mandated future seismic upgrades and the completion of Alternatives 1 and 2 of the Heart and Vascular Center.

 
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Arguments For Proposition H Arguments Against Proposition H
VOTE YES on Proposition H to continue one of San Diego's and East County's greatest success stories - Grossmont Hospital. This premier model of public/private partnership with Sharp HealthCare combines the public resources of a state-of-the-art community hospital with a nationally recognized nonprofit healthcare system.

For nearly 60 years local residents have relied on Grossmont Hospital for life-saving, comprehensive medical and emergency healthcare. For much of that time, nationally recognized Sharp HealthCare has served as the hospital's operating partner, delivering consistently high quality patient care.

Grossmont Healthcare District first affiliated with Sharp in 1991, knowing that a private provider with significant healthcare expertise could operate the hospital better than government AND control government spending to further benefit the public. Since then, Sharp has saved taxpayers millions, investing over $300 million to improve our hospital while NO employees of the hospital have received public benefits or public pensions.

Prop H ensures this success story continues. Your YES VOTE means:

  • Grossmont Healthcare District will extend its lease agreement with Sharp HealthCare for 30 additional years, allowing Sharp to continue operating and managing the hospital until 2051.

  • Sharp will fund necessary future hospital facility repairs and improvements, including earthquake safety retrofits and investing $20 million to complete the Heart and Vascular Center - at NO additional cost to taxpayers.

  • Grossmont Hospital will remain a community hospital - owned by East County and San Diego residents. The lease extension agreement simply allows Sharp to continue providing high quality healthcare services at the hospital.

Prop H makes good economic sense. As an award winning healthcare provider, Sharp does operate the hospital better and more efficiently than a government agency.

Please join local doctors, nurses, EMTs, firefighters, former patients, senior citizens, and leaders throughout our community in taking this step to support Grossmont Hospital. Learn more at: http://www.yesgrossmonthospital.com

Please -VOTE YES.

DIANNE JACOB
San Diego County Supervisor,
Second District
BRIAN S. MOORE, M.D.
Chief of Medical Staff Sharp
Grossmont Hospital
JOAN EMBERY
Community Ambassador
NANETTE KENT, RN
Emergency Room Nurse
SUNNY COOKE, Ph.D.
President, Grossmont College

Rebuttal to Arguments For
The 1991 lease includes monthly rent payments. The proposed extension does not. Payment Schedule 2.1 of Sharp's existing lease lists $42,234,166 of the District's bond indebtedness that Sharp agreed to pay in monthly installments from June 1991 through November 2017, an obligation honored by Sharp.

It would seem logical to require similar payments under the 30-year lease extension. Inexplicably the Healthcare District Board i§. not seeking rent payments for the next 30 years. This lost income (totaling millions of dollars) would have been available for vital health programs such as the Burn Center and Food Bank, whose grant requests were recently rejected solely for lack of funding.

Sharp HealthCare [promises instead to pay for "earthquake safety retrofits" and to "complete the Heart and Vascular Center" as evidence of their commitment. How soon they forget that the district's taxpayers are already paying for these projects under the 2006 Proposition G $247,000,000 bond authorization. A more meaningful commitment would be a promise to relocate Sharp's offshore insurance company from the Cayman Islands to East County.

In June 1996 the Columbia/Sharp Partnership offered $53,000,000 for a thirty-year lease of Grossmont Hospital. It is likely worth much more today. Unfortunately we will never know how much more. The elected officials sponsoring this ballot proposition have refused to seek other offers and are instead proposing a non-competitive extension.

East County can be taken advantage of only if we allow it. Please join other thoughtful residents in voting "no".

JIM STIERINGER
Former Board Member, Grossmont Healthcare District and
Member of Protect East County

Please join me in casting a "no" vote on the proposed 30 -year extension of Sharp HealthCare's non-monetary ("free") lease of publicly-owned Grossmont Hospital.

Our hospital is too valuable to simply bestow without competition. In 1996 the Healthcare Board rejected Columbia/Sharp Partnership's offer of $53,000,000 prepaid rent for a 30-year lease. Perhaps an even better offer is available today but we will never know since the Board is neither seeking other offers nor demanding a market rent. They never determined whether another organization such as the Mayo Clinic would consider Grossmont Hospital for its California operations.

This vote is not about health care. The consensus is that Sharp provides adequate care. The real issue is a free gift of our publicly-owned $500,000,000 hospital. Under the current and proposed lease Sharp collects all hospital revenue and profits from which the Hospital's CEO is paid more than $500,000 per year. Sharp's wholly owned insurance company "Continuous Quality Insurance SPC", is headquartered in the Cayman Islands. Why not relocate it to East County as a show of commitment to our local communities?

Although an extension of the 1991 lease may ultimately prove to be a good idea, what's the hurry? The current lease doesn't expire until 2021. There is plenty of time to negotiate a better deal including hospital discounts for local residents. Let's compel the District to do it right by voting "no" on this improvident lease extension.

JIM STIERINGER
Former Board Member, Grossmont Healthcare District (1992-2010)
and Member of Protect East County

Rebuttal to Arguments Against
Our opponent simply misses the point.

The San Diego County Taxpayers Association has concluded that voting Yes on H makes good economic sense and is a good deal for local taxpayers.

If support from our local taxpayers association isn't enough, consider this:

This is the way a public/private partnership should work- where the public resources of a state-of- the-art community hospital join with an award winning nonprofit healthcare system to benefit the public.

Grossmont Healthcare District doesn't penalize Sharp HealthCare with a lease fee to operate the hospital. That money instead goes into patient care at Grossmont Hospital.

Sharp operates Grossmont Hospital on a not-for-profit basis, guaranteeing that all profits are reinvested in our community to improve healthcare services and hospital facilities.

As a nationally recognized non-profit healthcare provider, Sharp invests hundreds of millions of dollars in improvements, repairs and state-of-the-art, life-saving equipment at Grossmont Hospital. This funding would be the responsibility of East County and San Diego taxpayers if it were not for the public/private partnership with Sharp, one of the best examples of successful government outsourcing in California.

YES on H allows Sharp to continue investing in hospital improvements without further delay - including $20 million to complete the Heart & Vascular Center at no additional cost to taxpayers. Residents deserve these high quality healthcare services.

Join the San Diego County Taxpayers Association and hundreds of medical professionals, first responders, former patients, and leaders throughout our community supporting Prop H.

Please Vote YES.

SEAN KARAFIN
Interim President and CEO,
SAN DIEGO COUNTY TAXPAYERS ASSOCIATION
ELECT A STERN, Pharm.D.
Pharmacist
GEORGE V. HURST
Retired Board Member,
Grossmont Healthcare District
( 1968-1996)
JAMES A. JOHNSON, M.D.
RADM Retired, MC, USN
RENAE ARABO
Civic Leader


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Created: July 9, 2014 18:44 PDT
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