News Headlines Article

District Scrutiny Could Get Tougher
Payers and Providers

The legacy of Sacramento-based Sutter Health’s management of district hospitals in the Bay Area has been controversial enough to spur legislation placing closer scrutiny on how such arrangements are structured. SB 1240, authored by Sen. Ellen Corbett, D-San Leandro, and sponsored by the California Nurses Association, would forbid private entities from transferring any funds or assets out of hospital districts. It would also require annual – and publicized – audits of both the hospital operator and the district.