Co-oping with Daniel Freeman Hospital


by Sheila Bernard

A strong community effort is underway to save Daniel Freeman Hospital of the Marina.

Save Our Marina Hospital Coalition has obtained an injunction which will stop the new owner of the hospital, Tenet Corporation, from closing the hospital until some conditions are met. One condition is a planning process to assess the possibility of keeping the hospital open.

At a recent hearing at the Venice High School auditorium, a Tenet executive said there were some possible ways the hospital could be kept open, but he assumed it would be kept open under Tenet’s ownership. Considering the behavior of Tenet prior to the injunction, and considering corporate behavior in general in these days of Enron and Worldcom, there is reason for skepticism regarding Tenet’s capacity for running the hospital in the best interest of the public. A better alternative would be a combination of cooperative, private, and public ownership.

According to Tenet at another hearing at the Boys and Girls Club, in the years leading up to the bankruptcy of the hospital, the previous owners had a deficit of $55 million. To be conservative, let’s assume it took two years to acquire that deficit. Let’s assume also that the hospital serves about a quarter of a million people, because according to the map provided by Tenet, Daniel Freeman Hospital is the only hospital serving the entire 11th Council District.

Balancing a budget deficit of $55 million in two years would amount to less than $10 per month per person, which could potentially come partly from membership dues, arranged on a sliding scale, which could entitle members of the public to participate in decision-making for the “Daniel Freeman Health Care Cooperative.” The members could decide, for example, whether the cooperative should include a holistic component, consisting of alternative treatments such as chiropractic, acupuncture, etc. These alternative methods would attract other kinds of foundation and private support. In addition, cooperative investment by doctors and other professionals could supply part of the funding. UCLA, which has offices across the street from the hospital, could be approached for participation.

There are other health care cooperatives which we could learn from. For example, Group Health Care of Puget Sound can be found on the internet under ghc.org. There are also many countries in which large segments of the health care industry are owned by the public. While such a plan is being created, we would need the assistance of the Attorney General to keep the facility functioning at an adequate level.

The public sometimes acquires property through “eminent domain,” in which the government pays the owner of the property fair market value so the property can be used for a public purpose. This option could also be explored as a means to remove the hospital from the speculative market while a cooperative starts up.

Creating a health care cooperative would require a dedicated group of researchers and founders, and a public willing to trust each other enough to go into business together for mutual benefit. It would require a vision of democracy more profound than the ballot box: a vision of economic democracy which is built one business at a time. As hard and as slow as this might sound, it has been done by others, and we can do it too.

Posted: Fri - November 1, 2002 at 06:33 PM          


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