A brief history on Doctors Medical
Center's struggles
By Robert Rogers
Contra Costa Times
Posted: 01/26/2014 05:27:53 PM PST | Updated: a day ago
The reasons for Doctors Medical Center's unsustainable financial situation are a familiar
story across the state, as district hospitals bear the strain of treating underinsured and
uninsured patients.
Doctors Medical began operations in 1954 as Brookside Hospital, serving the residents of
the newly formed West Contra Costa Healthcare District.
At the time, the county had three district hospitals -- the other two have closed or been
absorbed by another health care provider.
The hospital did relatively well until the 1990s, when expenses started exceeding
revenues as it lost patients with private insurance.
In 1997, the health care district partnered with Tenet, a for-profit hospital company
highly regarded for its efficiency and profitability. Tenet took command of health care
services delivery and made significant capital investments in the building, property and
equipment.
But unable to turn a profit, Tenet backed out in 2004, taking its management team and
key infrastructure, including information systems technology, with it.
"Tenet's termination of the partnership is telling," said Dawn Gideon, DMC's interim
CEO. "They're good. If they couldn't make money here, no one can."
To stave off closure, the district proposed a special parcel tax ballot measure (Measure
D), which 84 percent of voters approved in June 2004.
Despite the 2004 parcel tax, DMC continued to struggle, posting operating losses of
$22.9 million in 2005, according to hospital records, and eating up cash reserves. In 2007
and 2008, interim management made $17 million in cuts -- thanks in part to bankruptcy
