HOSPITAL'S MASTER PLAN QUESTIONED NEW COUNCILMAN JUMPS ON NEWHALL MEMORIAL ISSUE.

Byline: JUDY O'ROURKE

Staff Writer

SANTA CLARITA -- Newly appointed Santa Clarita Councilman Tim Ben Boydston has hit the ground running, demanding answers from local hospital officials to a battery of questions about their controversial master plan, which will soon go before the City Council.

Boydston, the executive director of the Canyon Theatre Guild, met with an independent consultant and is determined to master the economics of hospital governance before his vote on the long-range plan.

"Some people in the hospital organization voiced the opinion it's not a good thing we are taking so much time in this process," Boydston said, noting that he disagrees. "As far as I'm concerned, we won't have a vote until the questions are answered."

Henry Mayo Newhall Memorial Hospital is seeking the city's approval for a master plan that would detail how the facility could be built out over the next 25 years. Santa Clarita planning commissioners last fall approved the plan, which allows for tripling the size of the nearly 333,000-square-foot campus.

Boydston's appointment last winter to finish the term of Cameron Smyth after Smyth took a state Assembly seat hinged in part on his promise not to run in 2008 -- and some wonder if his zeal is a ploy to trigger a groundswell of support for a run anyway. Boydston insists the decision stands, but he may run in 2010 or seek a different seat, he said.

He has brainstormed with Dr. Gene Dorio, a geriatrics specialist who's lobbied against the hospital's planned closure of an intermediate care unit, and with David Gauny, who heads Smart Growth SCV, a grass-roots group of about 500 that questions the density and impacts of the hospital project.

Boydston's queries ranged from practical to tactical. How many doctors on staff have offices on and off hospital grounds, how much space in campus medical buildings is occupied by nonstaff doctors, what's the occupancy rate for beds, how is the space laid out and what changes are planned and will the hospital's president and CEO get a bonus if the plan and a development agreement are approved, he asked.

Among its responses, the hospital noted 7,700 square feet of medical office space is leased to those who are not on staff.

About 40 percent of the hospital campus is owned by G&L Realty Corp., which develops medical-related properties. The company provided an infusion of cash when the hospital went into bankruptcy several years ago. Roger Seaver, Newhall Memorial's president and CEO, is widely credited with turning things around.

During city planning commission hearings, the grass-roots coalition questioned whether the plan provides an adequate balance of hospital and medical office space. In other words, is Newhall Memorial beholden to G&L and allowing high-density offices in a plum hospital location as payback for the financial rescue.

A study requested by Councilman Bob Kellar, on the proportionality of hospital versus medical office space, is under way.

Boydston asked for copies of all agreements between Newhall Memorial and G&L and questioned whether G&L is helping to pay fees for lobbyists and consultants hired for the project, how much space the hospital now leases from G&L and what it is used for, and what land on campus is owned by the hospital and by G&L.

The hospital said consulting costs for engineering, architecture, urban and environmental planning are paid 60 percent by Newhall Memorial and 40 percent by G&L -- based on land holdings -- and lobbyist fees are split 50-50 by the partners.

The hospital leases less than one-fourth of the medical office space managed by G&L on the grounds.

Boydston asked pointedly if Seaver or others have an ownership interest for profit-sharing agreements with G&L, how much G&L is paying Newhall Memorial for permission to build medical office buildings and parking garages on hospital property and whether there are profit-sharing agreements between the hospital and G&L.

Newhall Memorial declined to reveal Seaver's compensation for 2006, but said its board members do not and have not had any business relationship with G&L.

"It is the consensus of the board that any other release of Mr. Seaver's total compensation would be an inappropriate diversion of time and attention needed on the master plan, as well as a violation of Mr. Seaver's privacy," Elizabeth Hopp, chairwoman of the hospital's board, wrote in an April 5 letter to Boydston and the council. "Mr. Seaver has the potential for a performance bonus that is highly integrated to the strategic priorities of the hospital."

Newhall Memorial serves 680 square miles of rapidly growing suburbia, and Seaver says city approval for the master plan is needed for the hospital to remain the predominant provider of acute services in the valley.

Roughly 60 percent of residents' health care needs are being met outside the valley.

Seaver and others agree the region's growth would be able to support two hospitals. In a recent "report card" on hospitals statewide, Newhall Memorial was rated "above average" by maternity patients, but it rated "poor" in patient satisfaction and care for patients with heart failure, and "below average" in caring for pneumonia patients.

Earlier this month Providence Holy Cross -- which recently opened a $47 million outpatient medical facility near Newhall Memorial -- confirmed it has begun negotiating for property owned by Newhall Land and Farming Co. just outside city limits that would be suitable for a 200-bed hospital.

Newhall Memorial's master plan is on the council's agenda in June.

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