District vs. Hospital Lawsuit

By Suzanna Coxhead

•In 1985, the five publicly elected Directors of the Marin Hospital District unanimously, and after numerous public meetings, agreed to lease Marin General Hospital to a private non-profit 501c3 corporation, which is the lessee. This corporate entity is similar in structure and intent to those of many charitable organizations such as the Red Cross, Y.M.C.A., Heart Association and Cancer Society. They must operate with a charitable purpose and in the public interest.

•In 1996 Marin General affiliated with Sutter Health. Sutter and its approximately 26 affiliated hospitals are all non-profit. California Pacific Medical Center (San Francisco), Alta Betes Hospital (Oakland) and Novato Community Hospital are all examples of Sutter affiliated hospitals.

•The public owns the MGH sixteen-acre campus and as a result of the 30-year lease, Marin General Hospital (Corporation) is the tenant. Local residents and doctors serve on its Board of Directors along with two Sutter appointed representatives and act as the operating Board. The lease will expire in 2015.

•The District Directors (3-2 vote) filed a lawsuit against MGH Corp. in 1997 for the purpose of voiding the lease and to return operating control of the Hospital to the 5 elected Directors. In 2000 the Superior Court in Sacramento ruled in favor of MGH (the tenant). The District (landlord) has appealed that decision. A hearing was held in August 2002 before the California Court of Appeals in Sacramento. A decision by the Court is expected soon. The District has spent over $1,500,000 of our health care dollars in recent years on litigation matters.

•I voted against the lawsuit. The differences between the District and the Hospital should and could be settled rather than litigated if a constructive relationship is developed. I will continue to work toward developing a constructive relationship, if re-elected