Alameda hospital to treat veterans

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On Feb. 11, the Alameda Hospital will begin treating war veterans as part of
a tentative agreement reached with the United States Department of Veterans
Affairs.

The Alameda Health Care District Board of Directors is expected to authorize
the agreement in January, though a verbal agreement between the two
organizations was reached Thursday.

Board member Jordan Battani called the contract a "win-win" for the hospital
and the VA because it will result in additional revenue for the struggling
hospital and needed medical services for area veterans.

East Bay veterans are traveling to Fairfield for inpatient care when the VA
facilities in San Francisco and Palo Alto are at capacity.

"(The VA) is looking for capacity in lots of places," she said. "Their
infrastructure is not keeping up with the demands with the conflict in Iraq.
... The issues for them are particularly acute in the East Bay because many
hospitals have a capacity problem."

The hospital and the VA have been in talks for a partnership that would
result in a permanent new facility serving civilians as well as veterans at
Alameda Point. Those talks are ongoing, said Deborah Stebbins, the
hospital's chief executive officer.

Under the current agreement, the hospital would provide in-patient services
for veterans -- primarily from Alameda, Berkeley, Castro Valley and San
Leandro -- until Dec. 31, 2008, with four separate one-year options.

The hospital is expected to see 84 patients a year, while earning about
$9,000 per patient for annual revenue of about $756,000.

The numbers are tentative and will be based on the actual number of patients
seeking care as well as a discount the hospital will provide, said Joel
Burgess, a planner with the VA.

"These are Medicare rates," he said. "That part is set. It's just a matter
of what is the illness or injury and what is the discount they're
providing."

Burgess declined to comment on the discount, though Stebbins said it was 5
percent.

The hospital has been looking at ways of increasing its patient load and
decreasing its annual budget deficits, which came to $2.7 million, ending
the last fiscal year. The hospital is subsidized by about $6 million in
property taxes.

Battani said diversifying its customer base has been one way for the
hospital to increase its revenues. The hospital already has a contract with
Kaiser Hospital for their eye surgeons to use the hospital's facilities.

"From a strategic perspective, it makes sense for us to have many
organizations so we don't become too dependent on any one for volume," said
Battani, a chief operating officer for the Health Plan of San Joaquin HMO.
"That's why I'm particularly excited about this one. It's absolutely a step
in the right direction."

Battani added that the contract would include a provision giving Alameda
residents priority over other patients.

"I think it's a great opportunity for the Alameda Hospital to reinitiate a
relationship, a formalized relationship with the veterans administration and
serve people who served in the military," Stebbins said. "I think it's a
nice tradition with Alameda's historic connection with the military."

Reach Alan Lopez at 510-748-1659 or e-mail alopez1@bayareanews group.com.

Hal Cleveland, U.S. Navy, (Ret.)