Sutter Medical  Center Faces Costly Delay, Loss of Construction Jobs as State Deadline Looms

The California Nurses Association (CNA) has filed a lawsuit that threatens the future of the new Sutter Medical Center Castro Valley now under construction.

“That the nurses union would sue to stop us from building our new hospital after a decade of planning is extremely frustrating to our employees, physicians, volunteers and patients who have worked so hard and so long for this,” said Eden Medical Center President & CEO George Bischalaney. “This political action by the union hurts everyone, puts thousands of jobs in jeopardy, threatens the future of the hospital and could cause irreparable harm to the community.

“This type of action drives up the cost of health care for everyone. After an exhaustive and inclusive public process, the union’s lawsuit could mean will not be able to meet the State’s 2013 deadline to replace the Eden hospital. Not meeting the deadline could result in closure of current hospital before the new hospital is completed and certified for occupancy.”

The Environmental Impact Report and land use entitlements were approved by the Castro Valley Municipal Advisory Council, the Alameda County Planning Commission and Alameda County Board of Supervisors. The first phase of construction has been approved by the Office of Statewide Health Planning and Development. Alameda County granted necessary permits and construction started July 1.

The new medical campus will create more than a 1,000 union jobs during the three years of construction and pump millions of dollars into the local economy benefiting many local businesses.

Construction crews demolished the vacant Pine Cone Apartment complex and began relocating the helipad and are readying the site for the foundation of the $320 million, seven-story, 130-bed hospital and regional trauma center. The new medical center will expand needed emergency and urgent care services. A new 80,000-square-foot medical office building for physicians is also planned. Sutter Health is financing the entire project with no public taxes or funding.

Sutter has invested more than $200 million in capital in Eden Medical Center’s facilities since acquiring the hospital from the Eden Township Healthcare District in 1998. The new hospital and medical office buildings would bring this investment in the regional medical campus and trauma center to more than $600 million by 2013.