Costly earth­quake pro­tec­tions force L.A. hospi­tal to close

Modern Healthcare - - REGIONAL NEWS - —Alex Kacik

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.

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