Sierra Kings Healthcare District Lease and Sale of Assets, Measure G (June 2011)
Measure G permits the Sierra Kings Health Care District to:
- Enter into a lease (with an option to sell) of the district's real estate and building.
- Sell the district "non-real property assets," such as furnishings.
It is likely that the district will enter into a sales/lease agreement with Adventist Health/Central Valley Network. The terms of the intended deal include:
- A 15-year lease of the hospital property at $800,000 annually, subject to increases.
- Purchase of the rural health clinics for $4.6 million
- Purchase of equipment for $3.7 million
- $4.5 million for outstanding payments from insurance companies.
- Retiring Sierra Kings approximately $7.5 million in revenue bonds.
Sierra Kings has clinics in Carbo, Dinuba, Orange Cove and Parlier and a 49-bed health and birthing center in Reedley.
The Sierra Kings district filed for Chapter 9 bankruptcy protection in October 2009. According to Sandy Haskins, the interim chief executive officer of Sierra Kings, Measure G and the intended merger with Adventist ."..assures continued access to health care in the district. We view this as a partnership to best serve the health-care needs of the residents of the district."
The Adventist Health/Central Valley Network operates the Adventist Medical Center in Hanford and the Selma Community Hospital and numerous clinics in the San Joaquin Valley.
- Election results from the Fresno County elections office as of 5:00 a.m. on June 8, 2011.
Supporters included Annette Payne, who said, "We need [the Sierra Kings District Hospital] first of all for all the patients that come here because if they don't where are they going to go to Selma? A lot of them don't have cars and if an emergency an ambulance they go to Fresno. It's needed here not only for the community here but all around."
Text of measure
The question on the ballot:
|Measure to Preserve Community Health Care. To retain access to hospital, emergency, surgical, radiology, obstetrical/gynecology, clinic and physician services at Sierra Kings Health Care District (“District”); should the District approve (1) a lease, with an option to sell, all of the District’s improved real property assets, and (2) the sale of the District’s non-real property assets, for fair market value as determined by independent appraisal, with no cost liability to taxpayers, to Adventist Health or an affiliated entity?|
- Fresno Bee, "Vote to decide if Adventist Health can buy Sierra Kings," April 16, 2011
- California Healthline, "California Hospital News Roundup for the Week of April 22, 2011," April 22, 2011
- The Business Journal, "Sierra Kings moves toward merger with Adventist," April 22, 2011
- ABC, "Reedley fights to keep a hospital open," May 23, 2011
- Note: This text is quoted verbatim from the original source. Any inconsistencies are attributed to the original source.