Dr. Benjamin Graham, President of the local medical group Mendocino Medical Associates (MMA), answered questions on 3/29/06 from the HRC about rumors that MMA might affiliate with Sutter Health and how this might affect the Hospital's negotiations with potential affiliates.  

HRC:  I have been told that negotiations on affiliation of Mendocino Medical Associates (MMA) with Sutter Health are in final stages and that the decision to affiliate has been made.

Dr. Graham: No decision has been made yet, but there is certainly a strong interest on our part, and, I believe, on Sutter's as well.    There are two main drivers from our standpoint. One is economic-much like the hospital our financial situation is very tenuous. There are many reasons for this, which I will not take the time to detail here. As President of MMA, I am certainly responsible for our current financial situation, but taking responsibility doesn't in itself fix anything. We need capital, and management skills.
   The second driver is quality-we need technology for electronic medical records, help with recruitment and other things a large organization can give us.

HRC: Would you please present answers to the following questions at the Board meeting on Thursday. It is important that the community hears these answers, first to quell untrue rumors and second to fully inform the community of ongoing negotiations that relate to affiliation agreements. HRC: What do you know about the status of MMA negotiations with Sutter?

Dr. Graham: See above

HRC: Is MMA remaining open to an offer from the hospital to become a hospital-based rural health clinic?

Dr. Graham: Absolutely-the best option in my opinion would be a three-way partnership that combines the increased reimbursement from a MCDH-held RHC license, with Sutter's management skills and capitalization. Sutter feels the same way.

HRC: If the Sutter affiliation occurs, how will this affect the hospital's affiliation evaluations? Will it preclude some affiliation options?

Dr. Graham: It may make things more difficult for the hospital. Would Adventist want us if the dominant medical group is part of the Sutter Foundation? I don't know.    I can only say I proposed looking at affiliation for MCDH more than 1 year ago when the headline "No Other Options than Parcel Tax" appeared in our local papers. Unfortunately, not much was done until lately. MMA cannot afford to wait any longer.

HRC: Which members of the affiliation committee have a financial interest in MMA, either directly or indirectly through an ownership interest in the new MMA office building?

Dr. Graham: I have a direct interest in MMA. The relationship between MMA and Mendo Coast Med Plaza is landlord-tenant only. The office building is owned by private investors, which includes Linda James and myself. The hospital has the ground lease, and the Foundation is also an investor.

HRC: Does the hospital consider that there is a conflict of interest in having Dr. Graham and Dr. James (and possibly others) on the affiliation subcommittee?

Dr. Graham: Good question-not a simple answer. Any affiliation must address the interests of MCDH as well as its medical staff-both those who are a part of MMA, and those that are not. In the "big picture" those interests are aligned- MCDH cannot exist without its medical staff and vice-versa. However, options may arise that might affect these parties differently.