Thursday, May 25, 2006

PPH Tapped Out

Vander Spek Commentaries re PPH Plans
http://www.nctimes.com/articles/2006/02/28/opinion/commentary/17_45_192_27_06.txt

With Palomar Pomerado Health winning control over the Escondido Research and Technology Center site for a new hospital, the tough questions can no longer be dodged.

The Escondido City Council was most persuaded by the threat that PPH would remove all acute care from Escondido and by fanciful promises for the downtown. Threats and public relations may have gotten everyone on board, but they cannot change the fact that this is a runaway train destined for a very messy train wreck.

Immediately after this victory, PPH admitted the obvious. Their plan is on financial life support. Projects in downtown Escondido, Poway, Valley Center, Ramona, San Marcos, Rancho Penasquitos and even much of the ERTC hospital will need to be "delayed" (the cruelest form of denial). When the dust settles, we could be left with a hodgepodge of hobbled facilities, crushing debt and broken promises.

Here is an update on the PPH Facilities Master Plan:


New hospital in ERTC $531,000,000

Converting Palomar Medical Center 73,000,000

Upgrading Pomerado Hospital 139,000,000

Clinics in V.C., S.M. R.P. & Ramona 10,000,000

Total as presented to voters in July, 2004 753,000,000

Admitted 30% increase estimate at 12/31/05 229,600,000

Subtotal 982,600,000

15% increase in 2006 147,390,000

15% increase in 2007 169,498,500

Total if started in Jan, 1, 2008 1,299,488,500

Additional debt (revenue bonds) (210,000,000)

Proposition BB funds (496,000,000)

Shortage of funds $593,488,500

The situation is actually much worse than this. As everyone agrees, costs are going up much faster than shown above. There is no way to start any major project until a much later date. All projects are drastically behind schedule, and large donors have been scared away.

There is no painless way to solve this crisis. Since voters will not stomach a new "oops" bond, the entire plan must to be reworked from top to bottom. Despite PPH resistance, the obvious place to start is by abandoning the ERTC project. Whether it is ever built or not, it has become a sinkhole, swallowing funds, time, promises, goodwill, trust and hope out of our district.

Of course, had PPH stuck to its original plan of expanding the existing Palomar Medical Center and Pomerado sites, we would right now be close to breaking ground and united in our focus on overcoming escalating costs.

Instead, this will be remembered as a time of lost opportunities and failed leadership.

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