Adventist Health explores Palm Drive affiliation

SEBASTOPOL and ST. HELENA -- Palm Drive Hospital is in talks with the St. Helena Region of Adventist Health about possible affiliation as it seeks long-term financial stability after years of uncertainty.

The 37-bed Sebastopol hospital, which just last year emerged from Chapter 9 bankruptcy protection, has identified the Roseville-based health group as a possible parent that could help chart a return to solvency and possibly increased services, according to Palm Drive Healthcare District board officials.

Palm Drive has made it known that it would seek as many strategic alliances as it could, as consensus emerged that a stand-alone hospital, overseen by the Palm Drive Healthcare District, would struggle to survive on its own at current fiscal projections. A committee was set up to explore such options earlier this year, said Jared Dreyfus, a board member who sits on that committee, and the talks with Adventist are a result of that.

“Two things really made [Adventist Health] really attractive to the committee -- one was the team that is coming to look at us is the team that is running the St. Helena Region, and that team made a very dramatic turnaround in St. Helena,” Mr. Dreyfus said. “The second thing was we learned early that the St. Helena Region itself had done a very similar deal with Red Bud Community Hospital in Clearlake.”

Terry Newmyer, chief executive officer of the St. Helena Region, echoed Mr. Dreyfus’s points in confirming that Adventist Health is exploring the possibility of adding Palm Drive to its regional portfolio.


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