Natividad Medical Center Press Release - August 15, 2006

Interim Board of Trustees Appointed

Natividad Medical Center in Salinas will receive $8 million from two other local hospitals over the next two years.

Salinas Valley Memorial Healthcare System( SVMH) and Community Hospital of the Monterey Peninsula(CHOMP) have agreed to provide the money as part of a partnership with Monterey County to help stabilize Natividad and reduce its financial losses.

The Monterey County Board of Supervisors approved the pact and under the agreement, SVMH and CHOMP each would provide $2.5 million this fiscal year and $1.5 million each during the 2007-2008 fiscal years.

Under the pact, called the Intergovernmental Transfer and Grant Agreement, Natividad would remain a county department but receive financial contributions from the two other hospitals. SVMH is based in Salinas, and CHOMP is headquartered in Monterey.

Both CHOMP and SVMH would receive two voting positions on the Natividad Board of Trustees, representing the majority of votes on the new seven-member board.

The new board replaces Natividad's existing board of trustees, with the exception of a county administrative officer. It will also feature a member of the public and a county supervisor. The Interim Natividad Board of Trustees will serve as a seven member Advisory Board to the Supervisors. The Board of Supervisors retains the authority to approve the NMC budget, contracts, labor agreements & other operating decisions. The BOT will have the authority to address changes in management, operations, personnel, equipment, improve quality, enhance revenues & reduce costs. In addition to four members from SVMH & CHOMP, the BOT includes three County appointees, the CAO, BOS Chair, Jerry Smith (who also serves as Chair of the BOT)& County Counsel, Allen Bidwell and two County Advisors, County Treasurer/Tax Collector, Lou Solton, & NMC Chief of Staff, Marc Tunzi, MD who will serve as a non-voting member. All members on the BOT are posted on our Board of Trustees web page.