RES-2007-129RESOLUTION 2007- 129
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM OPPOSING THE SALE OF ANAHEIM MEMORIAL
MEDICAL CENTER TO PRIME HEALTHCARE AND CALLING
UPON THE CALIFORNIA ATTORNEY GENERAL TO DENY
APPROVAL OF SUCH SALE
WHEREAS, Anaheim Memorial Medical Center is a non profit hospital
that has served the City of Anaheim since 1958, by providing high quality, critical
healthcare services to our community; and
WHEREAS, in 1966, 27 Anaheim leaders incorporated the Anaheim
Memorial Hospital Development Foundation to, "assist with the procurement and
extension of financial aid towards the expansion of facilities, operation and maintenance
of the Anaheim Memorial Hospital, located in Anaheim, California, in accordance with
the needs of the community;" and
WHEREAS, our community has relied on Anaheim Memorial Medical
Center for its healthcare needs, and Anaheim Memorial Medical Center has never backed
away from its responsibility to meet those needs; and
WHEREAS, there are significant benefits to maintaining Anaheim
Memorial Medical Center's not for profit status, such as its primary obligation to serve
the needs of the community, its governance via community representation, and its re-
investing of profits in the community through high quality services, programs and facility
improvements, rather than distribution of profits either to shareholders or at the whim of
investors; and
WHEREAS, the City of Anaheim has foregone revenue by virtue of the
hospital's tax exempt status, and the City has played an active role in supporting
Anaheim Memorial Medical Center's access to tax exempt financing; and
WHEREAS, Anaheim Memorial Medical Center provides exceptional
community service including the development of programs to address prevalent health
risks that affect Anaheim residents such as diabetes, obesity and vascular and heart
disease; and
WHEREAS, a for -profit buyer may promise to maintain these services for
a limited period of time, but will not be legally obligated to the stewardship of a not -for-
profit institution, dedicated to its community as opposed to shareholders; and
WHEREAS, Standard Poor's, a widely respected provider of
independent credit ratings, upgraded Memorial Health System's credit rating from A to
A+ in December 2005, and whereas, Anaheim Memorial Medical Center administration
stated to the California Attorney General that the hospital should report a net income of
up to $6 million for fiscal year 2007, which_ represents a significant improvement over
prior years.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of Anaheim believes that the sale of Anaheim Memorial Medical Center, Anaheim's
flagship nonprofit community hospital, to the for profit Prime Healthcare Services is not
in the public interest and, therefore, opposes such sale; and
BE IT FURTHER RESOLVED that the City Council of the City of
Anaheim calls upon the California Attorney General to deny approval of the sale of the
Anaheim Memorial Medical Center to for profit Prime Healthcare.
THE FOREGOING RESOLUTION is approved and adopted by the City
Council of the City of Anaheim this 17th day of July 2007, by the following
roll call vote:
AYES:
NOES: Mayor Pringle, Council Member Sidhu
ABSENT: NONE
ABSTAIN: NONE
ANAHEIM
Council Members Hernandez, Galloway, Kring
ATTEST,
ALL A& I
CI Y LERK OF TH A A
66051.1
CITY OF AHEIM
By
MA O OF THE
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