The 2020 Seismic Safety Extension allows city or county hospitals or hospitals that meet strict financial hardship criteria to receive a seven year extension from the 2013 seismic safety deadlines and instead require the hospitals to replace those buildings by 2020.
The Alfred E. Alquist Hospital Facilities Seismic Safety Act of 1983 (California Health & Safety Code §§ 129675, et seq.), establishes, under the jurisdiction of the Office of Statewide Health Planning and Development, a program of seismic safety building standards for certain hospitals constructed on and after March 7, 1973. In 2007, Senate Bill 306 added Health & Safety Code §130061.5, which authorizes qualified hospital owners, including city or county hospitals or hospitals that meet strict financial hardship criteria, to receive a seven year extension from the 2013 seismic safety deadline and instead require the hospitals to replace those buildings by January 1, 2020.
Health & Safety Code §130061.5 specifies several different requirements that must be met for a hospital to receive relief from the retrofit or rebuilding deadlines of 2008 and 2013. To apply for the 2020 extension under the provisions of Health and Safety Code §130061.5 the following conditions must be met:
- Structure is on the list of buildings required to meet the 2013 seismic safety deadlines.
- Statement regarding the buildings use for direct patient care.
- The hospital owner has requested an extension of the deadline described in Health and Safety Code, subdivision (a) or (b) of Section 130060.
- Hospital has submitted demonstration that it is owned or operated by a city, county or city and county (if so, application is approved to proceed with the next steps specified in the bill, if not, further requirements must be met).
- Hospital has submitted financial information to OSHPD by July 1, 2007 for the most recent fiscal year prior to that date showing the following, for the hospital owners and all of its hospital affiliates, considered in total:
a. Net long-term debt to capitalization > 60%.
b. Debt service coverage < 4.5
c. Cash to debt ratio < 90%
- Hospital maintains a contract with the California Medical Assistance Commission (CMAC) under the selective provider contracting program (unless in an open area established by CMAC).
- Hospital continues to maintain at least basic Emergency Medical Services, if the hospital provided emergency medical services at the basic or higher level as of 7/1/2007.
- Hospital meets at least one of the following criteria:
a. The hospital is located within a Medically Underserved Area or a Health Professions Shortage Area designated by the federal government pursuant to Sections 330 and 332 of the federal Public Health Service Act (42 U.S.C. Secs. 254b and 254e).
b. The CMAC determines that the hospital is essential to providing and maintaining Medi-Cal services in the hospital's service area.
c. The hospital demonstrates that, based on annual utilization data submitted to the office for 2006 or later, the hospital had in one year over 30 percent of all discharges for either Medi-Cal or indigent patients in the county in which the hospital is located.
d. If the one of the above is not met:
i. OSHPD will determine, by means of a health impact assessment, that removal of the building or buildings from service may diminish significantly the availability or accessibility of health care services to an underserved community.