Measure G Fails to Pass

At 1:40am, on a red-eyed Wednesday morning, the final tally was released. Measure G, the VHS hospital sale proposal, failed to pass.

So what happens now?

1. Select Healthcare is still obligated to purchase Moreno Valley Medical Center for $47 million. It can back out of this deal however, but must forfeit the $14 million deposit it paid to VHS.

2. If Select Healthcare moves forward in purchasing Moreno Valley Medical Center, it will leave VHS with only two hospitals. This will allow VHS to sell off one of the remaining hospitals without a public vote. My guess is that VHS will sell off Menifee Valley Medical Center, either to Select Healthcare, or another buyer. It will use the money from these two hospitals to pay for the seismic retrofit of Hemet Valley.

3. I'm guessing that VHS will retain Hemet Valley Medical Center.

4. VHS will probably place a new bond measure on the ballot, thinking that people are now willing to have their property taxes raised.

5. VHS still doesn't have a hospital management company in place, after it fired Chaudhuri's company earlier this year. It's going to have to find one.

6. If Select Healthcare opts to back out of the purchase of Moreno Valley, then it opens up possible sales to other companies that wanted to buy all three hospitals.

Whatever the case, we're back to the drawing board.