Tuesday, June 30, 2015

[Alameda County] Grand jury report blasts Alameda Health System, supervisors for shoddy oversight


The Alameda County Grand Jury blasted Alameda Health System, which runs Highland Hospital and provides care for many of the county's poor and indigent, for inadequate financial oversight and lack of communication with the county's Board of Supervisors, leading to a roughly $220 million budget crisis.
The Alameda County supervisors also came in for significant heat, as did Alameda Health System's management, led during the period in question by longtime CEO Wright Lassiter III, who left in December 2014 to take a top leadership role at the $4.5 billion Henry Ford Health System in Detroit.
The system faced "very serious cash flow issues" beginning in July 2013 due to a flawed transition to a new electronic records system and the acquisition of San Leandro and Alameda hospitals, which the 2014-2015 grand jury report described as "two struggling hospitals."
The civil grand jury said the health care system's board was overly reliant on recommendations by Lassiter's management staff (although it used no proper names throughout to describe individuals) and was swayed by political leaders regarding the acquisition of San Leandro Hospital, "without demanding the due diligence it had earlier requested."
That acquisition's cost to the county included a "three-year negative $92 million cash flow impact," the report said.
June 29, 2015
San Francisco Business Times
By Chris Rauber

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