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Sierra Kings Healthcare District Lease and Sale of Assets, Measure G (June 2011)

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A Sierra Kings Health Care District Lease and Sale of Assets, Measure G was on the June 7, 2011 ballot for voters in the Sierra Kings Health Care District, where it was overwhelmingly approved.[1]

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.[2]
  • 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.[1]

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.[3] 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."[1]

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.[1]

Election results

Measure G
Result Votes Percentage
Approveda Yes 2,380 95.35%
No 116 4.65%


Election results from the Fresno County elections office as of 5:00 a.m. on June 8, 2011.

Supporters

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."[4]

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?[5]

External links

References