Stevens Hospital will not be on the ballot in November asking voters for millions of dollars.
But come May 2009, it could be.
Hospital commissioners asked staff Wednesday, July 23 to spend the next 60 days exploring what a May 2009 ballot measure might look like. It would be Stevens’ first ballot measure since 1995.
The hospital gets $3.8 million a year from taxpayers now, but that drops to $2 million in 2010, spokesman Jack Kirkman said. That is significantly less than the $23 million Kirkland’s Evergreen Hospital gets, or the $18 million Renton’s Valley Medical Center receives.
The lack of tax dollars has meant the hospital has not been able to keep pace with improvements and expansions, officials said.
About $179 million is needed for improvements before 2014, hospital officials said at a July 21 retreat. That would be less than the brand new, $400 million facility a 2007 study called for.
For months, commissioners have struggled to decide whether to seek those dollars from voters, or through a merger or partnership with another hospital organization — or some combination of both.
If voters pay for improvements, the hospital will retain control over Stevens. If a different hospital pays, local control could be diluted.
Wednesday’s direction indicates the five-member commission could be leaning locally.
“For me, at this point, I would not consider any sort of sale, merger or acquisition unless the voters do not support the hospital,” commissioner Kimberly Cole said July 23.
Commissioner Chuck Day has said he believes the district should ask voters first, and commission president Deana Knutsen has repeatedly criticized hospital consultants — investment bankers Shattuck Hammond — for painting too-rosy pictures of past hospital mergers.
Wednesday’s direction doesn’t mean merger talk is dead, however, said commissioner Fred Langer.
Just because the hospital is exploring a ballot measure doesn’t mean it will pursue one. Nor does ‘exploring’ one item preclude any mergers or acqusition talk, he said.
“Is that at the forefront? No. But is it far from the forefront? No,” Langer said. “I think we can take a look at mergers and acquisitions at the same time.
“I think the hospital district can walk and chew gum at the same time. It is not that hard,” he said.
Commissioner Bob Meador also expressed caution after the meeting.
Stevens needs a lot of money, he said.
Although nothing is known about the possible May ballot package, voters might not be willing to stomach a plan that would solve the hospital’s problems, he said. But a too-small package might not solve many problems at all, Meador said.
“Unless (the money) is tied to some very aggressive business practices it won’t do anything particularly other than keep some nice paint on the walls, do some small remodels, and some refurbushings of the hospital itself,” he said.
Other ‘actions’
Stevens’ commission also failed to initiate the second phase of its consulting contract with Shattuck Hammond. The second phase of the contract included a financial incentive to Shattuck Hammond, a 2 percent sales commission, if Stevens was eventually sold.
Finally, the commission did ask staff to examine capital needs of hospital services on a product-line by product-line basis, a move which could pave the way for more small-scale partnerships like Stevens’ current cardiovascular and cancer arrangements with Seattle’s Swedish Hospital.
Reporter Chris Fyall: 425-673-6525 or cfyall@heraldnet.com
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