FHD pays CHS $5 million; other progress minimal

The progress made by Fallbrook Healthcare District (FHD), taxed with finding and securing more medical services for the community following the closure of Fallbrook Hospital six months ago, is minimal.

The sole item that appears to have been settled is the amount the district would pay Community Health Services/Fallbrook Hospital Corporation (CHS/FHC), which elected to terminate its lease of the hospital in December 2014. The lease contained language that dictated reimbursement to CHS for certain items if it ended early.

"The district reached a final settlement [with CHS] of $5 million in February," said FHD administrator Vi Dupre, adding that of that amount, $1.5 million was placed into an escrow account until CHS completes all terms defined in the agreement as the accountability of CHS/FHC.

According to Dupre, the agreement finalized the district's financial obligation to CHS for the hospital facility itself, the lower building (former wellness center) on Brandon, and the building located at 617 W. Alvarado St., which now houses A+ Urgent Care. The district leased the Alvarado property to the privately-owned urgent care in April 2015.

Many other questions remain unanswered, however.

It was reported six months ago by the district that CHS would continue to operate the Skilled Nursing Facility on Potter Street while a new operator was being sought and a transition could take place. The district, when asked, would not disclose what, if any, progress has been made on this, and who is actually currently operating the facility. The district's response was, "At this time, the skilled nursing facility is operating under the name Fallbrook Hospital Skilled Nursing Facility. A license to operate as a freestanding skilled nursing facility is being pursued."

The Village News has asked the district what progress has been made on leasing any space in the main hospital building or the one on Brandon to medical providers, since it was earlier reported that some outpatient services were likely to be sought for those sites. It does not appear that any new lessees have been secured. The district's response to this question, "There are no successor occupants within the main hospital building. Some of the office space in the building that was the former wellness center is currently occupied on the second floor by CHS/FHC business staff as agreed in the settlement agreement. There are no occupants on the first floors." That would indicate that no "new monies" are being paid by CHS/FHC for that space.

The newspaper has also asked the district to provide the current cost to the district (taxpayers) of maintaining those properties and any necessary labor while they stand empty. The district response was as follows:

*Wellness center (Brandon Rd.) - "All utilities of the former Wellness Center are the accountability of CHS/Fallbrook Hospital Corporation as its sole occupant."

*617 W. Alvarado (A+ Urgent Care) - "All utilities of the A+ Urgent Care are the accountability of A+ Urgent Care as defined in the terms of their lease agreement with Fallbrook Healthcare District."

*Hospital building - "All utilities of the main hospital building are being paid by Fallbrook Healthcare District. Additionally, the district has secured maintenance (buildings, equipment and grounds), insurance, and security agreements as applicable and appropriate to all of the hospital campus property. Average cost to the district, for the hospital campus property for the months of April and May has been, rounded, $26,000."

However, talks continue with various interested parties regarding the available spaces.

"To date, we have had inquiry, meetings, site tours and discussion with numerous and varied entities that have approached the district with expressed interest," said Dupre. "Services that the district seeks are those that are not currently present but are needed to provide accessibility to quality, outpatient care and services locally. The district is seeking to provide support services to the physicians of the community in arenas such as imaging, mammography, laboratory, therapies that will assist in diagnosing and treating illness as well as support in rehabilitative services to restore and programs to assist in the maintenance of health and well-being." The district will not disclose the names of any entities that have shown interest.

Since the closure of the hospital, Fallbrook's medical community has been undergoing change, with certain physicians aligning themselves with other facilities, and some relocating to other demographics. Others have remained steadfast, utilizing support systems already in place.

"The district is keenly aware and concerned with impacts on the medical providers of Fallbrook," said Dupre, on behalf of the district. "We have initiated a survey of physicians, primary care and specialists, to get their input to assist the district in discerning what physicians identify as real and specific needs for continuance of care of their patients in their practices within the community of Fallbrook. We have received several completed surveys and anticipate that additional responses are forthcoming in the next week. There will be an additional outreach to those who have not yet responded, via a telephone inquiry/request to complete the survey. The collected responses will be compiled for review in order to develop an appropriate course of action."

"The district will seek to address the needs expressed, but must first get the physicians input in identifying what those needs are," she said. "Additionally, we are exploring how best and most effectively to reach out and get input from a large segment of the community."