SAN PABLO (KCBS) – One of the largest healthcare safety nets for the poor in the East Bay is again teetering on financial collapse.  

Doctors Medical Center San Pablo emerged from bankruptcy in 2008, and recently the Contra Costa County Board of Supervisors loaned the medical institution $10 million.

Things, it appeared, were looking up. But, that’s all changed recently.

“What’s dramatically changed is the new rules from the state on how money is distributed to hospitals that serve MediCal and low-income residents,” summed up West County supervisor John Gioia, who sits on the hospital’s governor board. The hospital, which serves the area’s underinsured and uninsured, had been receiving $12 million annually from the state. That figure has been knocked down to $4 million.

KCBS’ Dave Padilla Reports:

“The hospital still needs to find a long-term financial viability plan. Otherwise it’ll be right back to square one and could face closure in the future,” warned Gioia.

The options for the facility are few.  “Declaring bankruptcy to buy time with creditors, restructure debt in order to be thoughtful about the long-term planning process,”  Gioia suggested.

“We’ve been meeting with Kaiser and John Muir, we will continue to explore our options with the state, there will be a lot of key decisions made this summer.”

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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