Negotiations between Mendocino Coast Healthcare District and Adventist Health over the future of the region's only hospital have raised fears among local residents about the future of healthcare in the area. Both parties have agreed to set a termination date if they cannot reach an agreement, a clause that has sparked worry within the community.
Paul Katzeff, a Healthcare District board member seeking re-election, said hospital is an essential service. “Without a hospital, tourists are hesitant to visit, and older residents may leave for more accessible healthcare. Young families also depend on local healthcare for prenatal and pediatric care."
Paul Garza, chairman of the Healthcare District Board, has been leading the negotiations, joined by Dr. Robin Sarrahn, representing Adventist medical staff. Despite community concerns, Garza emphasized the positive tone of the discussions. “We’ve had highly positive talks, and Adventist Health has shown a commitment to resolving local issues,” he said. Garza attributed the hospital's financial struggles to low rural hospital reimbursements rather than disagreements between the hospital and the district.
Oncology services, which faced potential cuts, will continue, Garza assured, citing recent findings that indicate the hospital’s cancer treatment center remains profitable. The hospital, which serves a population predominantly on Medicare and Medical, faces significant reimbursement gaps compared to private insurers. To address funding challenges, the Healthcare District has proposed establishing a Business Improvement District, which would impose an 8% surcharge on reimbursements. Similar models are under consideration in neighboring Lake County.
As negotiations continue, Garza reassured residents that the hospital is unlikely to close. "We are committed to keeping care local," he said, noting that any final agreement would likely take time to finalize.
On Thursday morning the Adventist Health and the Health Care District released a joint statement that they "are making steady progress on optimizing the existing agreement to provide access to healthcare on the coast."
