Sequoia Healthcare District reaches $19M settlement with Dignity Health, boosting funds for local programs

Sequoia Healthcare District reaches $19M settlement with Dignity Health, boosting funding for local programs

in Community

Sequoia Healthcare District announced Friday it has reached a $19 million settlement with Dignity Health to resolve a disagreement involving the terms of the transfer of Sequoia Hospital in 2007 to Dignity Health, which the district said will boost funding for local community programs.

Under the settlement approved by the healthcare district’s Board of Directors Thursday, Dignity Health, known in 2007 as Catholic Healthcare West, will pay $19 million in addition to $3.375 million from an unrelated audit issue to Sequoia Healthcare District over the next 20 years, including $2 million in 2021 and then $1.02 million annually thereafter. Fifty-percent of the settlement funds will go directly to Sequoia Healthcare District “to further their investment in community health by developing and implementing innovative and impactful programs and providing crucial resources to local non-profits that provide health-related services,” according to the district. “The other 50 percent will be spent in conjunction with Dignity Health on agreed-upon projects in the District.”

Pamela Kurtzman, Sequoia Healthcare District’s CEO, called the agreement “mutually beneficial” and one that will “greatly benefit the communities we serve.”

“Every dollar of this settlement will be dedicated to further supporting the health and well-being of the District’s more than 230,000 residents,” Kurtzman said in a statement, adding, “the District and Sequoia Hospital are identifying and prioritizing the unmet needs within our community where these funds will make the most impact and, while we don’t know the specific programs yet, we can assure our residents that all decisions will be made with a focus on equity, to understand and address the significant health needs of our highly diverse population.”

Jerry Shefren, President of the District’s Board of Director, said the agreement not only resolves issues over the 2007 transfer agreement but will “be a significant new infusion of funds for District residents and a strengthening of our partnership with Sequoia Hospital.”   

Photo courtesy of Sequoia Healthcare District