By Matt Artz
Tuesday, November 18th, 2008 at 4:23 pm in Uncategorized.
Looks like this won’t make it into print tomorrow, so I’ll give it a quick plug here:
Washington Hospital has approved a $1.5 million intergovernmental loan to help keep afloat St. Rose Hospital in Hayward.
St. Rose is apparently operating fine, but it is saddled with bad loans that it had to take out in 2005 when its patron Via Christi of Kansas decided it wanted to divest itself of the hospital.
That, combined with a state mandate to make the hospital seismically safe within 20 years, put the hospital at risk.
So, the county has cobbled together a package whereby they get some cash to the state, and the state matches it with federal money, which helps pay off the Via Christi loans and gives the hospital some more cash.
That, in turn, puts the hospital in a position to qualify for a long-term state loan on more favorable terms, which would provide St. Rose with the funds to do the required seismic work.
Washington Hospital is so far the only one to help out St. Rose, although others may as well, said Dave Kears, who has been putting together the bailout package for Alameda County. The Washington Hospital contribution appears to have solidified the deal, Kears said. “That was essential,” he said.