FUNDING THE NEW PEACE ISLAND MEDICAL CENTER
Extensive discussions between representatives of the San Juan County Public Hospital District #1 Board, San Juan Community Hospital Committee Chairmen, PeaceHealth executives, and legal counsels for both the Hospital District and PeaceHealth resulted in a contract for a long-term agreement leading to the building and operation of a new Medical Center. The contract seeks to address realities of the Island's financial challenges. PeaceHealth has offered the community a commitment which includes assumption of financial respondibility for most costs of construction and operations.
Construction:
- Philanthropy is expected to contribute $10 million toward the cost of construction.
- PeaceHealth will fund the remaining $20 million for the land, facility construction, and equipment.
- The community will provide no Inter Island Medical Center tax levies or bond monies for construction.
Operations:
PeaceHealth will fund the operations of the Peace Island Medical Center including financial losses. Profits will first be applied to cover losses. Net profits will be reinvested in the Peace Island Medical Center. The Hospital District will contract with PeaceHealth for services including 24 hour emergency room care. The Hospital District will subsidize PeaceHealth for those contracted services to an amount not to exceed the current Inter Island Medical Center tax levies.
