Title
Supervisor Thomas recommending the Board approve and authorize the Chair to sign a Letter of Support for Senate Bill (SB) 1432 (Caballero) which would extend the deadline for the 2030 seismic mandate and require the state to analyze, and report to the Legislature on, the mandate’s impact on health care costs and access throughout California’s communities.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
Over the past few decades, nearly all hospitals have spent billions to ensure their buildings will remain standing after a major earthquake, protecting patients and workers. Unfortunately, after supporting communities through the COVID- 19 pandemic, California hospitals experienced new financial and operational challenges, leaving many in financial distress. From 2019 to 2020, California hospital’s total net income decreased by $4.49 billion.
Despite the financial challenges that hospitals continue to face, compounded by rising costs, hospitals are required to invest significant funds to meet the next seismic requirement. The Alfred E. Alquist Hospital Seismic Safety Act requires that all hospital buildings continue to provide patient services following an earthquake by January 1, 2030. Pursuant to current law, hospitals that do not comply with 2030 seismic standards will be required to close their doors.
According to a 2019 RAND Institute study, the estimated cost for upgrades and construction needed for all California hospitals to comply with the 2030 seismic standards range from $34 billion to $140 billion depending on compliance approach, whether retrofitting existing buildings or constructing new ones.
Working with the California Hospital Association (CHA), a team of legislators including Senator Marie Alvarado-Gill have advanced SB 1432, which would:
• Extend the 2030 seismic compliance deadline
• Address additional post-earthquake disaster preparedness requirements
• Assess opportunities for financial support
• Require the state to assess the financial and access impacts of the 2030 requirement
Marshall Hospital reached out to the County to provide a Letter of Support for SB 1432 in order to provide relief to hospitals, especially rural hospitals, and provide more time to meet the 2030 seismic standards. If one or both of the only two hospitals in the County, Marshall and Barton, were forced to close because they could not meet the 2030 seismic standards, our residents and visitors would be significantly and negatively impacted. The health and safety of our residents and visitors is of utmost importance and the County would demonstrate that belief by submitting this Letter of Support.
ALTERNATIVES
The Board could choose not to approve the Chair to sign the Letter of Support for SB 1432.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office
FINANCIAL IMPACT
There is no financial impact associated with this item.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair’s signature on the Letter of Support and return to Alison Winter for distribution.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Alison Winter, Principal Management Analyst