CASTRO VALLEY -- The board of the Eden Township Healthcare District is still examining its options for how to properly give millions of dollars to San Leandro Hospital, district CEO Dev Mahadevan said Thursday.
The board took no action Wednesday during a closed session discussion with their legal counsel about a nearly resolved legal battle with the hospital's current owner, nonprofit Sutter Health. An arbitrator recently ordered Eden Township to pay Sutter $17 million in damages following the district's lost effort to retain hospital ownership.
Eden board members last month pledged to give the troubled hospital up to $20 million to help keep the doors open, a facility where three district board members say they are on the medical staff. In order to avoid violating state conflict of interest laws, the district is looking at redirecting the damages it owes Sutter to the hospital when the hospital is donated to Alameda Health System later this year. To qualify as an exemption under the law, however, the plan could need the court's blessing.
"That's all under review," said Mahadevan, adding that there is no court deadline in place and the district is still trying to figure out how to come up with the money. No date is set for the board to resume discussions on the topic and Mahadevan said he was unsure if the board would meet as planned in August due to board member schedules.
Ashly McGlone covers San Leandro, San Lorenzo, San Ramon and the Washington Township Health Care District. Contact her at 510-293-2463. Follow her at Twitter.com/AshlyReports.