Verity Health System, Seton Medical Center Health Care Impact Reports
Total Page：16
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Effect of the Asset Purchase Agreement between Verity Health and Strategic Global Management on the Availability and Accessibility of Healthcare Services to the Communities Served by Seton Medical Center Prepared for the Office of the California Attorney General August 19, 2019 Contents Introduction & Purpose ............................................................................................................ 4 Reasons for the Transaction as Stated in the Notice to the California Attorney General ............................... 5 Timeline of the Transaction ............................................................................................................................. 6 Summary of the Asset Purchase Agreement ................................................................................................. 11 Use of Net Sale Proceeds ............................................................................................................................... 19 Profile of Verity Health........................................................................................................... 20 Verity Health .................................................................................................................................................. 20 Verity Health Inpatient Statistics ................................................................................................................... 23 Statement of Operations ............................................................................................................................... 24 Net Patient Service Revenue ......................................................................................................................... 24 Operating Expenses ....................................................................................................................................... 25 Financial Position and Debt Obligations ........................................................................................................ 25 Credit Rating and Outlook ............................................................................................................................. 26 Verity Health Payer Mix ................................................................................................................................. 27 Unionized Employees .................................................................................................................................... 28 Profile of Purchaser ................................................................................................................ 29 Overview ........................................................................................................................................................ 29 KPC Hospitals ................................................................................................................................................. 30 PHH Hospitals ................................................................................................................................................ 31 Victor Valley Hospital Acquisition, Inc. and Victor Valley Hospital Real Estate, LLC ..................................... 31 Hospital Compare .......................................................................................................................................... 34 Profile of Seton Medical Center .............................................................................................. 36 Seton Medical Center .................................................................................................................................... 36 Overview of the Hospital ............................................................................................................................... 37 Key Statistics .................................................................................................................................................. 38 Programs and Services ................................................................................................................................... 38 Accreditation.................................................................................................................................................. 40 Quality Measures ........................................................................................................................................... 40 Seismic Issues................................................................................................................................................. 42 Payer Mix ....................................................................................................................................................... 44 Managed Medi-Cal Managed Care ................................................................................................................ 45 Medical Staff .................................................................................................................................................. 46 Patient Utilization Trends .............................................................................................................................. 47 Financial Profile.............................................................................................................................................. 49 Cost of Hospital Services ................................................................................................................................ 50 Charity Care ................................................................................................................................................... 50 Community Benefit Services .......................................................................................................................... 52 Analysis of the Hospital’s Service Area ................................................................................... 54 Service Area Definition .................................................................................................................................. 54 Service Area Map ........................................................................................................................................... 55 Health Professional Shortage Areas, Medically Underserved Areas, & Medically Underserved Populations ....................................................................................................................................................................... 56 STEMI Receiving Centers in San Mateo County ............................................................................................. 58 Certified Stroke Centers in San Mateo County .............................................................................................. 59 Demographic Profile ...................................................................................................................................... 60 2 Medi-Cal Eligibility ......................................................................................................................................... 62 Selected Health Indicators ............................................................................................................................. 62 2016 Community Health Needs Assessment ................................................................................................. 64 Hospital Supply, Demand & Market Share .................................................................................................... 66 Market Share by Payer Type .......................................................................................................................... 68 Market Share by Service Line ........................................................................................................................ 69 Seton Medical Center Analysis by Bed Type ............................................................................ 71 Medical/Surgical Capacity Analysis ................................................................................................................ 71 Intensive Care Capacity Analysis .................................................................................................................... 72 Psychiatric Care Capacity Analysis ................................................................................................................. 73 Subacute Care Capacity Analysis ................................................................................................................... 74 Emergency Services Analysis ......................................................................................................................... 75 Emergency Services Capacity ......................................................................................................................... 76 Summary of Interviews .......................................................................................................... 77 Reasons for the Proposed Transaction .......................................................................................................... 77 Importance of the Hospital to the Community ............................................................................................. 78 Selection of Strategic Global Management for the Proposed Transaction ..................................................