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09-120 RESOLUTION 09-120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA IN SUPPORT OF PHYSICIANS FOR HEALTHY HOSPITALS SPECIAL DECEMBER 15 2009 ELECTION ON MEASURE P WHEREAS,the primary role of local elected officials is to protect the health, safety and welfare of their residents, and to promote and sustain economic activity, WHEREAS,the City of Menifee recognizes the important contributions of the Menifee Valley and Hemet Valley medical centers to the regional emergency response and public healthcare system in a region that has less than half the number of hospital beds per 1,000 residents as the state average, WHEREAS,Valley Health System,the public healthcare district that operates the Menifee and Hemet hospitals, is the region's largest employer, responsible for 1,400 direct healthcare jobs and 1,500 indirect jobs, representing an annual economic activity of $834 million, WHEREAS,the Board of Directors of Valley Health Systems has accepted a$160 million proposal from Physicians for Healthy Hospitals, a group of more than 130 local doctors who practice in the Valley Health System that has come together to purchase the hospitals and other assets of Valley Health System, WHEREAS,Valley Health System has been in Chapter 9 bankruptcy since 2007 and the VHS Board of Directors has determined that VHS should sell its assets to Physicians for Healthy Hospitals to preserve hospital and emergency room services and to satisfy the district's debt obligation of at least $44.5 million to bond holders and$21 million to unsecured bankruptcy creditors, WHEREAS,the offer from Physicians for Healthy Hospitals provides the district with more than the appraised value of the hospitals and Valley Health System assets and assumes tens of millions of dollars in debt without any taxpayer debt or liability, WHEREAS, Physicians for Healthy Hospitals has entered an association agreement with St. Bernardine/Catholic Healthcare West to expand local access to nationally recognized healthcare programs, WHEREAS,Physicians for Healthy Hospitals, whose physician members are key stakeholders in the local healthcare delivery system,has committed to maintaining local acute-care and trauma services and to preserving hospital and healthcare jobs, City of Menifee Resolution 09-120 Support for Healthy Hospitals WHEREAS, The sale of the Menifee and Hemet hospitals would preserve $834 million in economic activity, nearly 3,000 local jobs and keep local hospitals and emergency rooms open to patients who in many cases would otherwise would face up to 30 mile transportation times to the next closest emergency room, WHEREAS, Voters within Valley Health Systems 886-square-mile service area have been asked to approve Measure P, which authorizes the sale of the Valley Health System assets, including its Menifee and Hemet hospitals, to Physicians for Healthy Hospitals in a special ballot election on Dec. 15, 2009. WHEREAS, Physicians for Healthy Hospitals has entered an agreement with Valley Health System to purchase Menifee Valley Medical Center and keep it open, contributing to our local tax base and providing crucial medical services to our community, whether or not Measure P is endorsed by voters. THEREFORE, BE IT RESOLVED,DETERMINED AND ORDERED by the City Council of the City of Menifee, County of Riverside, State of California, in regular session assembled on October 20, 2009 as follows: 1. That the City Council supports Measure P and the sale of Valley Health System assets to Physicians for Healthy Hospitals, 2. That the City Council has determined its support of Measure P is in the best interest of the regional healthcare system and local economy, PASSED, APPROVED AND ADOPTED, this 3rd day of November, 2009 by the following vote: AYES: 4 ' NOES:�� ABSENT: }i ABSTAIN: 6AJQj �d Wallace W. dg rton, Mayor ATTEST: M Kathy Bennett City Clerk Approved as to form: Elizabeth Martyn T City Attorney 2