The operator of Community Hospital of Long Beach, which celebrated its grand reopening in May 2021, has given up on plans to run the facility as an acute care hospital in the wake of an $80 million seismic compliance requirement.
On Tuesday, Feb. 15, the Long Beach City Council authorized an amendment to the lease of Community Hospital of Long Beach that will no longer require the facility to be used as an acute care hospital.
The lease currently includes a deed restriction that requires the facility to only be used for an acute care hospital with an emergency room and other health services.
Once amended, the lease will allow the tenant—Molina, Wu, Network, LLC (MWN)—to provide non-acute health care services that benefit the community—such as behavioral health, recuperative care, social services, education, government offices, housing for healthcare students or specialized services.
The Community Hospital of Long Beach lost its license to provide acute care services on Jan. 1 of this year.
To keep the license, MWN would’ve had to provide building plans and permits for required seismic compliance and begin construction by Jan. 1, 2022, according to state law.
During recent planning, MWN got a new estimate for the work: $75 million, 50% higher than anticipated three years ago during the first estimate, according to Economic Development Director John Keisler.
Rather than move forward with the changes, MWN abandoned its plans to run the facility as an acute care hospital.
The hospital was underutilized by the community since opening in 2021, with only one to two acute care patients per day, Keisler said.
