BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACR 2
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          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   ACR 2 (Hall) - As Introduced:  December 1, 2008 

          Policy Committee:                              Higher  
          EducationVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This resolution urges the University of California (UC) to  
          expedite negotiations with the Los Angeles County Board of  
          Supervisors and Charles Drew University of Medicine and Science  
          (Drew University) regarding future management of Martin Luther  
          King Jr. Hospital (MLHK).

          FISCAL EFFECT  

          Absorbable costs for UC to continue its ongoing discussions with  
          Drew University and other parties.
           
          COMMENTS  

           1)Background  . Drew University is a private nonprofit corporation  
            with its own board of trustees.  Since 1973, the State has  
            appropriated funds to UC to support clinical health science  
            education, research, and public service at UCLA in conjunction  
            with Drew University.  The 2008 Budget Act provided Drew  
            University $8.7 million for instructional and service  
            programs. 

            MLKH, located in the Watts/Willowbrook area of the county, and  
            also called King-Drew Medical Center, served as the primary  
            teaching site for UCLA-Drew University medical students and  
            Drew University medical residents.  In August 2007, serious  
            concerns involving patient care activities led the county  
            board of supervisors, which has administrative and fiscal  
            responsibility for the hospital to close MLKH.  Two hospitals  
            have taken most of the trauma patients who would have gone to  
            MLKH: St. Francis Medical Center in Lynwood, which is two  








                                                                  ACR 2
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            miles east of MLKH, and Harbor-UCLA, which is 10 miles  
            southwest.

           2)Purpose  . According to the author, when MLKH closed, the 1.6  
            million residents of Service Planning Area 6 of Los Angeles  
            County were left without a public hospital in their area.  The  
            author believes that UC should administer MLKH because of its  
            success in administering public hospitals and the need for  
            medical doctors and other health professional to be trained  
            and to work locally.

           3)Status  . For the past several months, representatives from UC,  
            Los Angeles County and the Schwarzenegger Administration have  
            been discussing an arrangement that would allow MLKH to reopen  
            as a viable healthcare facility.  According to an  
            informational item presented to the UC Board of Regents at its  
            March 2009 meeting, a new non-profit entity would be  
            established to operate the re-opened hospital with a 120-bed  
            capacity and an emergency room.  UC would enter into a  
            contractual agreement with the non-profit entity to establish  
            standards pertaining to quality assurance and the provision of  
            physician services.  All parties to the negotiations have  
            agreed that UC will not provide start-up or ongoing financial  
            support for the hospital.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081