BERMAN, KAISER MAY DO BATTLE.

Byline: Ben Sullivan Daily News Staff Writer

A fight is brewing between U.S. Rep. Howard Berman, D-Mission Hills, and health-care giant Kaiser Permanente over $68 million in federal funds earmarked for seismic upgrades at Kaiser's Panorama City hospital.

Berman asked Federal Emergency Management Agency Director James Lee Witt on Thursday to deny what he said was a request by the HMO to spend the federal money on upgrades at Kaiser centers in West Los Angeles and Hollywood. Berman believes the proposed shift of funds is the first step in Kaiser's ultimate plan to close the east San Fernando Valley hospital.

In a letter to Witt, Berman said the Panorama City facility is vital to the surrounding community because it provides emergency, primary and secondary health services to tens of thousands of area residents.

``If the hospital were to close, a significant number of low-income, minority and transit-dependent families would be forced to go elsewhere for important medical services, often at great inconvenience,'' Berman wrote.

Kaiser spokesman Jim Anderson said the HMO has had talks with FEMA about shifting the funds to the other construction projects but has not yet made a formal request.

Anderson said Kaiser has no plans to close the hospital, but is considering a plan to outsource acute and inpatient care, which account for only 10 percent of the hospital's business.

In addition to the Panorama City hospital, FEMA approved $70.5 million to upgrade Kaiser's West Los Angeles facility and $82 million for its Sunset Boulevard center.

FEMA spokeswoman Susan Healey said that even if Kaiser were to request the shift in funds, it would not necessarily be approved by the government agency. Any plan put forward must at least guarantee that Kaiser will continue to provide acute care in the same geographic region, she said.

Anderson said that much can be promised. If Kaiser were to request the shift in funds and received FEMA approval, it would either rebuild the Panorama City hospital with other money or contract with an existing health facility in the area to take over acute-care and inpatient services.

``All of those outpatient facilities are going to stay, no matter what,'' Anderson said. ``Most of (the hospital) is going to stay like it is now.''

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Photo: Rep. Howard Berman

Concerned about Kaiser plans