Struggling San Pablo Hospital To Stay Open With $10M County Loan

SAN PABLO (AP) — Contra Costa County supervisors are loaning a struggling hospital $10 million to keep its doors open.

The supervisors agreed unanimously on Tuesday to provide the advance to Doctors Medical Center in San Pablo. But they warned hospital officials that they need to come up with a plan to solve their budget problems and should not expect cash from the county every few years.

County officials also gave the 247-bed hospital a $10 million loan in 2006 after it declared bankruptcy. The hospital has repaid that loan with $1.5 million in interest although it is still struggling financially.

Interim hospital CEO Dawn Gideon said the county loan will be used to attract up to an additional $10 million in federal funding.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)

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