Guest column: DCHS board committed to buyer with similar values

While Daughters of Charity Health System (DCHS) works diligently toward finding a buyer who will continue to operate its six hospitals, special interest groups directly or through their surrogates are putting their self-interests above all others.
The concern voiced by a handful of groups and individuals against a potential buyer of our hospitals is misleading and in the self-interest of those voicing the criticisms. But most importantly, the unfounded criticisms are dangerous to the future health care needs of our underserved communities.
The sale process endorsed unanimously by the DCHS board of directors seeks potential buyers who can meet a strict set of standards that go far beyond the limited criteria laid out by these critics. Indeed, this sale is not motivated by profit or opportunity—it is about maintaining access to health care and meeting our obligations to our associates, physicians, retirees, bondholders and our communities.
Our DCHS network of hospitals is expected to have significant operating losses in fiscal year 2015. Without a buyer with the financial wherewithal to right the ship, our hospitals are in danger of shutting down.
The DCHS board of directors did not come to the decision to sell lightly. Daughters of Charity started its health care mission in California in the mid-1800s with the opening of the Los Angeles Infirmary, now known as St. Vincent Medical Center.
Today, the health system includes a medical foundation and six hospitals, among them O’Connor Hospital in San Jose, Saint Louise Regional Hospital in Gilroy, Seton Medical Center in Daly City, Seton Coastside in Moss Beach and St. Francis Medical Center in Lynwood.
Serving our communities, including people of limited means, has been a blessing for more than 150 years. However, in the current health care environment, it’s unsustainable. Reimbursements for Medi-Cal and Medicare patients—who make up the bulk of our patients – do not come close to covering operating expenses. DCHS hospitals are not alone in their distress – similar health systems across the country, many of them affiliated with religious orders such as ours, are being forced to sell their hospitals or face closure.
Selling the hospitals is a complicated process involving a broad range of stakeholders. The organizational priorities of all these stakeholders, including the unions and other special interest groups, should be in line with the goals and responsibilities of the board of directors—to continue serving the communities without jeopardizing the pensions of thousands of current and retired DCHS workers.
The unions and other groups with an interest in the outcome should be reassured that the sale process has been fair. DCHS is seeking a buyer that can meet as many of the board’s criteria as possible, which include preserving pensions; being willing to invest in capital improvements at the aging facilities; being financially stable enough to avoid putting the hospitals through disruptive bankruptcy proceedings; having a history of successfully managing hospitals in California and providing excellent care; and being willing to close the sale on a timeline set by the board.
Once a buyer is agreed upon by the board, the choice will be made public and presented to the California Attorney General. Without approval and completion of this transaction in a timely manner, our hospitals could face closure.
The DCHS board of directors understands the unique role our extraordinary hospitals have played in the lives of our patients, physicians, associates, and other stakeholders. We are committed to preserving that legacy by finding a buyer who can keep our hospitals serving our communities for years to come.
Robert Issai is President and Chief Executive Officer of Daughters of Charity Health System.