HIGH DESERT PLAN LEFT DRY COUNTY REJECTS PROPOSAL TO SPARE HOSPITAL.

Byline: Karen Maeshiro Staff Writer

LANCASTER - Los Angeles County health officials rejected a $12 million business plan that High Desert Hospital supporters said could save the facility from closure.

High Desert Hospital Advisory Council members said they were told at a meeting Friday with Department of Health Services officials in Los Angeles that the council's plan to bring in more patients and revenue wouldn't work.

``They essentially rejected our plan. They gave us a counterproposal, which we rejected,'' said Norm Hickling, an advisory council member. ``Their recommendation was to move forward with (converting High Desert to an outpatient clinic), and then pursue the contract with the Department of Corrections but take away all the acute-care inpatient beds. We said that was not acceptable.''

The county wants to eliminate inpatient services at High Desert and convert it into a multiservice ambulatory care center beginning in May 2003, as part of a countywide cost-saving measure.

The High Desert proponents said their business plan could generate total annual revenue of $10.5 million, including $5.6 million from the state Department of Corrections, which would contract for 50 beds to provide long-term medical care fo ailing prison inmates.

Corrections officials have said High Desert is one of several hospitals they are looking at to provide that kind of service.

A total of $4.2 million would come from Antelope Valley Hospital, Kaiser Permanente, High Desert Medical Group and Sierra Medical Group, which have expressed interest in using medical-surgical and skilled nursing beds and surgery rooms at High Desert.

An additional $1.5 million could be generated from encouraging county patients to go to High Desert rather than private hospitals, allocating clinic and administrative staffing based on the daily hospital census, and optimizing revenue collection.

Health services department officials found promising the plan to contract with the Department of Corrections, spokesman John Wallace said.

``We do believe that elements of the plan have the potential to generate new revenue, those related to a state Department of Corrections contract for skilled nursing beds,'' Wallace said.

Department officials, however, are concerned about costs of continuing to operate inpatient beds at High Desert. County officials believe the plan underestimates the actual costs.

``Basically the concerns are over the costs that were presented in the plan associated with acute-care beds. They are significantly higher than costs in the plan,'' Wallace said. ``The other big issue is the quantity of beds. We feel there is a correlation between the quality and quantity. There are not enough acute beds to justify remaining an acute-care hospital.''

In a letter dated Monday to Supervisor Michael D. Antonovich, advisory council chairman and Lancaster Vice Mayor Henry Hearns criticized the Department of Health Services.

``DHS has proposed that High Desert Hospital be converted into a free- standing skilled nursing facility. We are strongly opposed to this proposal, and moreover, we believe that DHS has failed to act in good faith,'' Hearns wrote. ``The DHS counterproposal only reinforces our belief that DHS had no intention of seriously considering proposals, which would preserve critically needed acute medical-surgical services at (High Desert).''

Hearns in the letter said the department's chief operating officer, Fred Leaf, described the hospital business plan as ``aggressive and risky.'' The council acknowledged the plan does involve risk but said High Desert has a proven track record of being aggressive and innovative.

``The council believes that DHS opposition to the business plan is driven, in part, by the unwillingness to undertake substantive reforms in this area, and a desire to prevent discussion regarding DHS contracting deficiencies,'' Hearns wrote.

Other advisory council members expressed dismay over the county's attitude toward the business plan.

``It's very unfortunate that the county is still considering closing High Desert Hospital because there is still a strong need for health care by the county in the community,'' Gary Hill said. ``It's not surprising that they continue to think of us as stepchildren out here.''

The advisory council plans to appeal to the Board of Supervisors at a public hearing at 11 a.m. today in Los Angeles. Supervisors will take testimony on its decision to close High Desert Hospital and 11 clinics elsewhere.

``We will appeal to the board that we have a good business plan. The crisis is here. We have what we feel is a solution for part of the crisis. We are going to ask for their support and at least give us a year to 18 months to see if we can make it happen,'' Hickling said.

County health officials have said that keeping High Desert open would require a plan that would produce at least $9.8 million annually in revenue.

Converting High Desert to an outpatient clinic would produce a net savings of $9.8 million in the 2003-04 fiscal year; $11.1 million in the 2004-05 fiscal year; and $12.5 million in the year after that, a county report shows.