Thursday, April 2, 2009

Back Of The Envelope Estimate

El Camino Hospital is preparing to take over the Community hospital on April 11. The public was invited to hear CEO Ken Graham and board chairman David Reeder to discuss finances and goals for both hospitals this past Monday..The new facility will be renamed El Camino-Los Gatos and will be viewed as an expansion of the Mountain View hospital. After taking over the 113-bed Los Gatos facility, El Camino will have a total of 512 beds and close to 1,300 physicians.Here is a list of El Camino's current cost estimates for the purchase and re-opening our Community Hospital :
Land and building: $45 million
Legal and consulting: $2 million
Equipment: $8.8 million
Pre-opening (IT, seismic updates): $5.3 million
Working capital: $5.9 million
Year one capital: $10 million
Total: $77 million

El Camino will also spend an estimated $22 million more by 2013 to meet new state seismic requirements. We need to make a mental note as community members that many services at Community Hospital are slowly starting to shut down in anticipation of the takeover. When it reopens July 11, the hospital will continue to offer medical and surgical beds, intensive care and OBGYN services, according to El Camino officials. The hospital also plans to expand spinal, orthopedics and urology services at Los Gatos. Not much on staff retention, or how pre-exisiting contracts will be administered. Why is this important you ask? Many of our local residents are employed by Community Hospital. It would be nice to see them receive an olive branch from El Camino. Anyone in the know care to share with us?I would be curious to hear, and remember- I can keep a confidence.

1 comment:

Anonymous said...

Please notice there are no sums of money listed for hiring new employees. Does anyone know how much it costs to hire new workers compared to keeping former employees? And where does employee salarys and compensation come from in their budget?