The Lompoc Valley Medical Center Board of Directors may decide Monday whether to keep pursuing a potential partnership or remain an independent facility, an issue that has sparked strong opinions in the community. 

A special meeting of the board will begin at 7:30 p.m. Monday in the boardroom at the hospital, 1515 E. Ocean Ave.

The agenda lists two main items — a summary of the potential partnership process, and a request for the board to continue or discontinue the potential partnership process and determine finalists, if applicable.

In September, Chief Executive Officer Steve Popkin quietly announced that the district “has initiated a process to evaluate and determine whether it is in the best interest of the greater Lompoc Valley Community for LVMC to remain an independent hospital and health care provider in its current structure, or to ‘partner’ in some fashion with a larger organization.”

Popkin claimed the hospital remains financially healthy with an Earnings Before Interest, Depreciation and Amortization margin of 9.5%, compared to the not-for-profit hospital average of approximately 6.1%.

“Nonetheless, with the changes and trends occurring in the hospital/healthcare industry, it is prudent as part of ongoing strategic planning to assess LVMC’s near, medium, and long-term situations, and act accordingly,” he said.

Pipkin claimed it’s common for peer hospitals to proactively assess independence and the potential merits of a partnership.

While most hospitals are operated by for-profit or nonprofit organizations, LVMC’s is unique since it belongs to a special district, with Lompoc Valley voters electing a five-member board for oversight and policy decisions carried out by paid staff.

As a special district, its revenue includes a share of taxes paid by property owners in the district.

Popkin said Lompoc’s hospital hired a consultant, Juniper Advisory, to assist in the  evaluation process, which included assessing approximately 25 healthcare organizations that could partner with LVMC, “and how they would propose to maintain and expand healthcare services to the community and provide capital investment to LVMC.” 

His September statement refers to receiving “indications of interest” and preliminary proposals, which apparently set the stage for the board’s Monday meeting to decide on the next step. 

The list of potential partners remains a mystery as hospital leaders have remained tight-lipped. 

While most government agency meeting agendas would include a packet of supporting information including a written staff report, an executive assistant for the district said no additional materials existed for Monday’s meeting. 

It wouldn’t be unusual to protect sensitive financial data but still release less-sensitive information, and the lack of transparency by the government agency contemplating a controversial decision has only fueled doubts.

The Lompoc Hospital District Foundation, which has raised millions of dollars through the years, opposes any proposed partnership.

“The foundation executive committee is very much against it, and we’re hoping that the board of directors will vote it down,” said Alice Milligan, the foundation board president. 

“We’re for local control,” Milligan added.

Whatever decision is made by the five-member board Monday, the panel still would have additional opportunities later to make a decision to remain independent, Popkin said.

He declined to answer questions about whether a partnership decision would require voters to weigh in, what assurances would be in place to ensure the local hospital remains open, or other topics.

He maintained the board is “performing its fiduciary duty by undertaking a process to determine whether partnering with a larger organization, or remaining independent, would be best. 

“The board of directors has been very transparent during this process and has encouraged and received input from a variety of stakeholders and community members. If this process continues forward, broad community input will be solicited,” Popkin said.

His statements include contradictions, at one point admitting the process is “occurring behind the scenes” but saying the board and hospital leaders “intend to be very transparent as this process unfolds (subject to any Non-Disclosure Agreement requirements).”

Popkin, who has led the Lompoc hospital since early 2019, previously worked for Parkview Community Hospital Medical Center in Riverside. An independent hospital for 60 years, the 193-bed acute-care facility gained a new owner when AHMC Healthcare Inc. acquired Parkview in 2018.

In addition to the 60-bed acute-care hospital, Lompoc’s district also operates the 110-bed Comprehensive Care Center and a number of outpatient medical facilities in the community. It also owns the old hospital building, which is leased to Crestwood Behavioral Health for a rehabilitation center. 

The board members elected by district voters are Dr. Elham “Ellie” Novin-Baheran, registered nurse Leslie M. Kelly, Dr. David L. McAninch, III,  Dr. Christopher Lumsdaine, and Roger McConnell, a financial advisor. 

The 463-square-mile hospital district includes the city of Lompoc, Mission Hills, Mesa Oaks, Vandenberg Village, a portion of Vandenberg Space Force Base, and the area east toward Buellton.