By Clyde Noel
The El Camino Hospital Board of Directors is getting closer to considering financing for the new hospital addition.
At last week’s regular meeting, Marla Gularte, chief financial officer, presented the most recent financials for approval.
“The finances continue to look impressive since we have no debt,” Gularte said. “What I am reporting tonight will help considerably when we consider financing for the hospital. We want the public to review our partnership when we go to the credit market.”
The hospital will be financed by a combination of sources, including the cash reserves, a capital campaign and tax-exempt bonds. The hospital also intends to submit a general obligation bond measure for the voters to approve in November.
Census volumes continue to increase at the hospital. The average daily census remains higher than last year’s, and net operating margin is higher than budget and higher than an A+ bond rating.
An important indicator is the “days cash on hand.” It measures the days the district could meet its average daily operating expenditures from cash reserves. Current cash reserves total $208.9 million, approximately $13.6 million higher than fiscal year 2002. The days cash on hand continues to be above the A+ bond rating criteria.
“With no other income, we could operate for a year,” Gularte said.
The board plans to increase communication with the public. Jon Friedenberg, chief executive officer of the El Camino Hospital Foundation, presented a plan overview titled “A Blueprint for Continued Service.”
The plan discusses the history of the hospital, the building of an earthquake-safe hospital facility, and the hospital campus. The hospital aims to incorporate the most advanced medical technologies and innovations to improve patient safety and comfort.
Board member Dave Reeder said it is just what he was looking for.
“We should give it to the city councils and the League of Women voters,” he said.
“We hope to meet with committee and opinion leaders in the community to get this going.”
