Salinas Valley Memorial Hospital (SVMH) Delays Investment Bank Hire : View From A Private Duty Caregiver
Richard Kuehn
Salinas Valley Memorial Hospital (SVMH) Delays Investment Bank Hire : View From A Private Duty Caregiver Serving, Carmel, Carmel Valley, Carmel-by-the-Sea, Gilroy, Gonzalez, Greenfield, Hollister, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, San Juan Bautista, Seaside And Soledad California
Salinas Valley Memorial Hospital (SVMH) can’t seem to shake the bad publicity it has been getting. A combination of issues with labor unions and charges that the Board of Directors is not being open about potential options including a sale (which could result in job cuts) have caused a number of issues for the hospital. I wrote recently on my blog about SVMH coming under fire for paying management consulting firm McKinsey & Company almost million to come up with strategic alternatives. One of its recommendations was that SVMH should merge or affiliate with a much larger health care system within the next 12 to 24 months, and SVMH was considering hiring Cain Brothers, perhaps to facilitate a sale. However, when the bank came to make their presentation to the SVMH Board, two board members got up and walked out of the meeting after expressing concerns that the meeting was being held in closed session. Today, there was a front page story in the Monterey Herald that the SVMH Board voted unanimously on Thursday to postpone hiring Cain Brothers until next month so that their proposal, to be put on the hospital’s web site, can be held up to public scrutiny. The bank proposes charging a fee of ,000 plus expenses to conduct an initial evaluation of what organizations might have interest in affiliating with the hospital and what doing so would entail. It doesn’t seem like much money given the woes the hospital has faced recently. If fees of a couple of hundred thousand can put the hospital in the hands of a company better positioned financially to deal with changes in health care reform which will likely reduce payments, the public will probably be better off in the long run facilitating a change of ownership and/or affiliation. However, given how much battling the union has done against change at SVMH, the issue of paying Cain Brothers fees will likely draw cries of protest. Assemblyman Luis Alejo (Democrat, Watsonville) and other politicians have also criticized the Board. “I think this is a very important decision and I think it’s been rushed,” he said. http://www.montereyherald.com/ci_18909261?source=most_viewedhttp://www.familyinhomecaregiving.com/blog/index.html?entry=salinas-valley-memorial-hospital-svmh1
About Richard Kuehn & Family inHome Caregiving of Monterey:After more than a decade of caregiving, both in a professional environment and for a 97 year old family member I was dissatisfied with service from local caregiving agencies. I became convinced of the need for a service which provides very personal assistance to elderly and founded Family inHome Caregiving serving the Monterey Peninsula. Please visit my blog where I talk about important senior issues at:http://www.familyinhomecaregiving.com/Blog
About Richard Kuehn & Family inHome Caregiving of Monterey:After more than a decade of caregiving, both in a professional environment and for a 97 year old family member I was dissatisfied with service from local caregiving agencies. I became convinced of the need for a service which provides very personal assistance to the elderly and founded Family inHome Caregiving serving the Monterey Peninsula. Please visit my blog where I talk about important senior issues at:http://www.familyinhomecaregiving.com/Blog
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