Grand Jury Investigation Urged on Proposed Hospital Sale

Gerrie Schipske, a candidate for mayor of Long Beach, urged residents to step up and file complaints with the Los Angeles County Civil Grand Jury regarding the announced proposed sale of city-owned Community Hospital to Molina, Wu, Network, LLC.

MWN was formed specifically to re-open the hospital in January 2021. Barely 10 months later, MWN announced it was closing the hospital and had run up $30 million in losses, which according to the terms of lease negotiated by the current mayor and council, would have to be repaid by the city. The agreement leased Community Hospital to MWN for $1 and guaranteed that the city would cover any losses of MWN.

“Who in their right mind would agree to lease a major piece of property for a dollar and then allow the tenant to operate at a loss so that the tenant gets the property to pay off its losses?” asks Schipske, pointing to the current mayor and City Council who agreed to the deal. “Where were the protections for the taxpayers who paid for Community Hospital?”

Schipske states the mayor and City Council were warned by city management that the terms of the deal “made it financially beneficial for tenant (MWN) to terminate the lease at some point, regardless of whether or not the hospital is viable.”

“They were told this was going to happen and they didn’t care,” says Schipske. “Councilwoman Price publicly dismissed the warning before she voted for the deal. Councilman Richardson didn’t even show up for the vote.”

“Now, instead of questioning the losses,” says Schipske, “the city is rolling over to the failed operator and setting up a process to sell the hospital and property to pay MWN for its failed management.”

“Taxpayers were lied to when the mayor and City Council pushed an extension of the Measure A sales tax,” reminds Schipske. “Politicians stood outside Community Hospital for a photo-op and lied to voters that an extension of the highest sales taxes in the area would ‘facilitate the reopening of Community Hospital, which would improve paramedic response times.’ It is time to hold them accountable for those lies.”

Schipske says she advocates residents stepping up and filing written complaints with the Los Angeles County Civil Grand Jury, requesting an investigation of this gift of public property.

“Someone outside of the city needs to get to the bottom of why this deal was really made even after there were warnings that Long Beach could lose this community asset,” Schipske emphasizes.

“The Grand Jury investigates misconduct of public officials and the books and records of any incorporated city or joint powers agency located in the county,” says Schipske. Long Beach residents can fill out a Citizens Complaint by logging onto: https://www.lacourt.org/forms/pdf/CitizensComplaint.pdf.

Voters wanting to join Gerrie Schipske in her efforts to raise “Clean Money” can log onto: https://www.schipske4lb.com/p/contribute.html.

Schipske encourages supporters to download the “Clean Money Campaign Pledge” by logging onto: https://tinyurl.com/Clean-Money-Campaign-Pledge  and send it to the other candidates running for mayor and City Council. “I pledge to be the best mayor that money cannot buy!”

[Editor Note: Above information provided by Schipske for mayor. Neither MWN nor city management spokespersons provided any comment to the Beachcomber on the hospital’s closure and proposed land sale.]