BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  ACR 2
          Author:   Hall (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 6/17/09
          AYES:  Alquist, Strickland, Aanestad, Cox, DeSaulnier,  
            Leno, Maldonado, Pavley, Wolk
          NO VOTE RECORDED:  Cedillo, Negrete McLeod

           ASSEMBLY FLOOR  :  73-0, 5/14/09 (Consent) - See last page  
            for vote


           SUBJECT  :    Management of Martin Luther King, Jr. Hospital

           SOURCE  :     Author


           DIGEST  :    This resolution urges the University of  
          California to expedite negotiations with the Los Angeles  
          County Board of Supervisors and Charles Drew University of  
          Medicine and Science regarding future management of Martin  
          Luther King, Jr. Harbor Hospital.

           ANALYSIS  :    

          Existing law:

          1. Authorizes the board of supervisors in each county to  
             establish, maintain, and operate a county hospital.

                                                           CONTINUED





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          2. Authorizes the board of supervisors of any county to  
             transfer the maintenance, operation, and management or  
             ownership of the county hospital to the University of  
             California, or to any other public agency or community,  
             non-profit corporation empowered to operate a hospital  
             facility, upon a finding that the community services  
             provided by the hospital could more efficiently,  
             effectively or economically be done by the transferee  
             than the county.  

          The California Constitution provides for the University of  
          California as a public trust under the governance of the  
          Board of Regents, subject to limited legislative control  
          and direction.

          This resolution makes various findings related to the need  
          for the Los Angeles County, Charles Drew University (Drew  
          University) and the University of California to jointly  
          operate the Martin Luther King, Jr. (MLK) Harbor Hospital  
          and urges the University of California to expedite  
          negotiations with the Los Angeles County Board of  
          Supervisors and Drew University regarding the future  
          management of MLK-Harbor Hospital.

           Background
           
          MLK-Harbor is located on South Wilmington Avenue in Los  
          Angeles in an area known as Willowbrook.  The hospital and  
          the Charles R. Drew University of Medicine and Science were  
          created in the aftermath of the 1965 Watts riots in which  
          32 people died and 1,000 people were injured.  In December  
          1965, the McCone Commission, established in the wake of the  
          riots, issued a report citing the lack of adequate health  
          care facilities as a contributing factor to the civil  
          unrest.  This prompted city and state officials to put in  
          motion plans to build a medical school and teaching  
          hospital in the Watts community.

          On March 27, 1972, the hospital opened its doors to the  
          community as a full-service medical center.  The hospital  
          expanded in 1998, by opening a state-of-the-art Trauma and  
          Diagnostic Center that is dedicated to treating patients  
          who have sustained accidental and intentional trauma  
          injuries.  At its peak, the hospital had a licensed bed  







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          capacity of 537 beds and through it's partnership with Drew  
          University, had become a teaching hospital.

          The hospital began to face significant difficulties,  
          culminating in the 2007 vote by the Los Angeles County  
          Board of Supervisors to close MLK-Harbor because of the  
          difficulties facing the hospital, including losing its  
          funding or the possibility of losing its license over  
          allegations of substandard care.  Since the closure of  
          MLK-Harbor in August 2007, the County has been working on  
          developing options to provide hospital services at that  
          site.  In the spring of 2008, at the direction of the Board  
          of Supervisors, the county approached the University of  
          California to assist in this effort.  

          Representatives from the University, Los Angeles County and  
          the Schwarzenegger Administration have been discussing an  
          arrangement that would allow MLK-Harbor to reopen as a  
          viable health care facility.  According to an informational  
          item presented to the 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.  The University of California 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 the University  
          of California will not provide start-up or ongoing  
          financial support for the hospital.

           FISCAL EFFECT  :    Fiscal Com.:  Yes

           SUPPORT  :   (Verified  6/29/09)

          American Federation of State, County and Municipal  
          Employees
          Charles Drew University of Medicine and Science


           ARGUMENTS IN SUPPORT  :    The Charles Drew University of  
          Medicine and Science argues that the closure of MLK  
          hospital not only left the 1.7 million uninsured and  
          underinsured residents of South Los Angeles without access  
          to hospital or medical care, but also exacerbated a major  







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          existing health care crisis in the county by straining  
          capacities at other county hospitals.  They argue that  
          there are immediate and obvious steps that can be taken to  
          address this issue, one of these being expediting  
          negotiations between the University of California, the  
          Board of Supervisors of Los Angeles County and the Charles  
          Drew University for the purpose of discussing the future  
          management of Martin Luther King, Jr. Hospital.


           ASSEMBLY FLOOR : 
          AYES:  Adams, Anderson, Arambula, Beall, Bill Berryhill,  
            Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,  
            Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED:  Ammiano, Fuentes, Gaines, Garrick,  
            Saldana, Smyth, Bass


          CTW:do  6/29/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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