In 1904, when founders established what would eventually be known as Paradise Valley Hospital, life in California was dramatically different compared to today. The average person’s life expectancy was a mere 47.6 years, and after heart disease, he or she would most likely die from tuberculosis, influenza or pneumonia. With less than 1.5 million people in California, there were no telephones, no TVs, no radios and no cars.* The entire landscape of life would be unrecognizable to modern eyes.

It is much the same picture in health care. Though tremendous medical advances have emerged in the last century, health care as an industry—particularly in California—has traveled a tenuous path.

In the last 100 years, medical researchers discovered penicillin, invented pacemakers and created vaccines for many deadly childhood diseases. In the last decade, they reduced breast cancer mortality rates, expanded medical imaging capabilities and even transplanted a human face. In California, however, those advances have met increased hardship, decreased funding and many tough financial situations.

Difficult Decisions

From 1996 to 2006, more than 80 hospitals in California closed their doors according to the California Hospital Association. In order to keep one more door from closing, Adventist Health faced its own tough financial situation head on and made the decision to sell one of its hospitals.

As of March 1, ownership of Paradise Valley Hospital, a 301-bed acute care facility in National City, Calif., transferred to Prime Healthcare Service, Inc.

“For the past several years, PVH had sustained substantial losses,” said Robert G. Carmen, executive vice-president for Adventist Health and former board chairman of the Southern California facility. “As many industry and market forces have impacted our ability to continue our mission, Adventist Health’s board of directors voted to sell this hospital to a new owner.”

“Adventist Health has taken the most responsible action available by transferring PVH to a new owner who will continue its operations and invest in its future,” added Carmen “We believe PHS will best preserve the delivery of health care services for the community.”

Continuing the Mission

A for-profit health care management company that owns and operates seven acute care facilities in Southern California, PHS has pledged to maintain all the existing patient care services, including the Emergency Department and the current levels of charity care at the hospital.

“Prime will continue to operate the hospital under the same long running tradition of community service established by Adventist Health over 100 years ago,” said Prem Reddy, M.D., FACC chairman of the board of PHS.

The sales agreement included the main physical plant, sitting on more than 30 acres in San Diego’s South Bay, as well as the Bayview Behavioral Health Campus and South Bay Rehabilitation Center. Under the agreement, nearly all of the hospital’s employees were offered employment with the new owner.

“PHS will face with enthusiasm and vigor the challenges of turning around the losing operations of the hospital with its proven physician-driven and patient-focused medical management protocols,” said Reddy. “We will invest the necessary capital to improve the healthcare delivery in the underserved and underprivileged communities of National City and the surrounding South Bay area of San Diego County.”

Adventist Health intends to maintain its presence in the community by continuing to operate home care services in Bonita. In addition, it is continuing its plans with Generations, Inc. for Paradise Village, a senior living community adjacent to the existing campus.

A Century of Care

Established by Ellen White, Paradise Valley Hospital started as an abandoned sanitarium and was purchased for $4,000 in 1904. Growing tremendously in the first decade, the facility doubled its size in three years and started a flourishing school of nursing. In 1912, the facility came under the management of the Southern California Conference of Seventh-day Adventists.

During the Great Depression, the hospital opened an off-site charity clinic for those unable to afford health care. And, in 1940, it received its fourth consecutive Hospital of the Year award from the American Hospital Association.

Joining the newly-formed Adventist Health System/West in March 1973, PVH experienced some important firsts as an acute care facility. It featured the first emergency heliport in the South Bay area, and its Infant Hearing Program, introduced in 1979, was the first of its kind in the nation. PVH also became the first hospital in the county to install a computer billing system in 1980.

“Adventist Health is incredibly proud of the Paradise Valley Hospital legacy of service,” said Donald R. Ammon, president and CEO of Adventist Health. “We look forward to continuing that legacy in the area through our home care services and senior living community.”

*Historical statistics courtesy of the U.S. Census Bureau