EDITORIAL: Wait and see on sale

There is a lot of concern, and rightly so, over the behind-the-scenes negotiating between Adventist Health, owners of South Coast Medical Center, and the Laguna Beach City Council.

The medical center is up for sale, and Adventist has promised an “open” bidding process, where the contenders for future ownership of the hospital will be known. But known to whom? That is the question.

The City Council has a committee working closely with Adventist, and we’re told by a reliable source that meetings have been held with potential buyers. The good news is that there are potential buyers, especially since Adventist has stated it’s been losing millions keeping the facility in operation over the years.

But not much of this “open” bidding process is truly open to the public, and that has the public worried.

Making matters worse, the council has held five or six closed-session meetings discussing ominous-sounding matters including “potential litigation” and the sale not just of the hospital but of the properties around it that are part of the entire complex. That’s a lot of prime real estate up for grabs.

At least one Freedom of Information Act request (actually that would be a State Records Act Request) has been filed seeking to pry loose some letter or record involving the talks. That yielded a letter that basically says what everyone already knows.

In the latest out of City Hall, Assistant City Manager John Pietig has asked the press to reiterate that the hospital sale is a delicate matter that is by necessity being conducted out of public view. Pietig wants the community to know that the council is working hard on the issue and “not to worry.”

Pietig writes: “State law charges the Attorney General with responsibility for approving the sale of not-for-profit hospitals.

“Even though the city does not own the hospital or control the sales process, the City Council is doing everything possible to ensure that likely owners understand the importance of retaining a high quality community hospital and an emergency room in Laguna Beach.

“With this in mind, Mayor Jane Egly and Mayor Pro Tem Cheryl Kinsman are leading a team of experts in hospital transactions and medical services to meet with possible owners of the hospital.

“In order to talk to these groups, the city had to agree to maintain the confidentiality of the discussions so that the integrity of the sale process is preserved to the satisfaction of the Attorney General. In addition, confidentiality is required to assure bidders that their conversations with the city will not be shared with their competition.”

It will take three months for the Attorney General to make a decision, and until that time, the community will just have to cool its heels and wait.