The Fort Bragg Advocate-News is reporting Mendocino Coast District Hospital board of directors has voted 4-1 to approve an affiliation agreement under which Adventist Health will operate the hospital in a lease-operation agreement for the next 30 years. The agreement includes a lease payment program to go toward an escrow account to be invested in seismic retrofit the existing hospital or build a brand new facility. The escrow account is expected to equal $25 million by 2024. Adventist Health agreed to the requested lease payment increase from $1.5 million to $1.75 million annually to accumulate the amount of funding needed for the retrofit project or new hospital. Adventist also agreed to maintain the existing services at the hospital for a minimum of two years.
Not a Definitive Healthcare newsletter subscriber?
Sign up to receive our latest news and blogs right in your inboxSign up for our newsletter