Chula Vista
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The Chula Vista City Council took the first step Tuesday night toward turning the operation of nonprofit Bay General Medical Center over to a profit-making corporation.
The council heard an ordinance calling for the 159-bed hospital to be operated by National Medical Enterprises on a 30-year lease.
A final vote on the proposal will be taken March 6.
The council’s move stems from the hospital’s inability to pay off $15 million in tax exempt bonds issued under sponsorship of the City of Chula Vista.
Under the tentative agreement, National Medical Enterprises will provide funds to pay off the bonds and another $15 million to build a 30- to 50-bed addition to the hospital, which has the second-highest occupancy rate in the county.
National Medical Enterprises is a Los Angeles-based corporation which operates medical facilities nationwide, including seven in San Diego County. Bay General is the second-largest hospital in the South Bay area.
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