Palm Drive to ask for proposals from seven potential partners

SEBASTOPOL -- Palm Drive Hospital's board of directors is set to issue a "request for information" to a group of health care organizations the hospital said could be "potential strategic partners."

The 37-bed hospital has made its wishes to align with a larger entity well-known, and has been in talks with Roseville-based Adventist Health about possible affiliation. More recently, the hospital hired two consultants to help Palm Drive identify what it should seek out of any affiliation.

The request for information to seven health care organizations spells out some of the hospital's goals for any affiliation, which include: working with the hospital to develop clinical alignments that better serve patients; assist in efforts to invest in primary care services and more coordinated care; assist with health plan contracting and other strategic alliances; potentially assist with management of operations; and assist with capital funding.

Recipients include the Marin Healthcare District, which oversees Marin General Hospital and recently affiliated with Sonoma Valley Hospital; St. Joseph Health System--Sonoma County; Adventist Health; University of California, San Francisco; Sutter Health; Catholic Healthcare West; and HealthTech, the current operator of the hospital.

The board has tentatively set a deadline for proposals of Sept. 30.

In 2007, the hospital sought Chapter 9 bankruptcy protection after hemorrhaging nearly  $7 million in operating losses. It emerged from Chapter 9 last May after selling off $11 million in bonds.


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