Costly earthquake protections force L.A. hospital to close
Los Angeles-based Pacific Alliance Medical Center will shut its doors in December, citing the massive costs to retrofit its facilities to meet seismic requirements.
The building does not meet current California seismic standards and it is not “economically viable for us to invest nearly $100 million to build a hospital on land that we would not own,” the company said in a statement. The physician-owned hospital’s closing was “in no way related” to a $42 million settlement with the federal government regarding allegations that it provided kickbacks to referring physicians, the company added.
Pacific Alliance reported a $12.2 million net loss and a negative operating margin of 17.9% in this year’s first quarter, according to public financial data. All 638 employees will be out of jobs, according to a Worker Adjustment and Retraining Notification sent last week.