We 
write with an update on the status of the Sutter Coast Hospital 
Strategic Options Study.  This is a study about the future of Sutter 
Coast Hospital (SCH), being conducted and paid for by Sutter Health, 
using a consultant group (The Camden Group) with ongoing business 
connections to Sutter Health.  As you know, the Medical Staff passed a 
unanimous resolution (among the physicians attending our Medical Staff 
meeting) that prior to participation in any study, we would like our 
concerns addressed with respect to  the funding, design, and rights and 
responsibilities of community participants.  The physicians have received no response to our concerns from Sutter Health or the Board of Directors of SCH. We
 have also confirmed with two community members familiar with the study 
that outside funding remains available, as long as the study results are
 not predetermined.  However, Sutter Health Regional President Mike 
Cohill and Sutter Health study coordinator Traci Van have rejected the 
outside independent funding.  Thus, although the hospital Board voted to
 approve a collaboratively funded and independent study, the current 
study is entirely Sutter funded and Sutter controlled.
You may also 
recall that the Medical Staff has passed two unanimous resolutions 
asking the hospital Board to rescind their prior vote to transfer 
ownership of SCH to Sutter Health's West Bay Region.  The Board of 
Supervisors and City Council also asked the hospital Board to rescind 
their Regionalization vote.  In every case, the local hospital Board 
refused to rescind their Regionalize vote, and in fact, the Board voted on 3/7/13 to leave the process of Regionalization in place.
Sutter Health
 claims SCH is losing money. In an attempt to verify Sutter's claims, I 
(GJD) have made repeated requests during the last year to meet with the 
hospital accountant, a meeting which is my right as a Director of SCH, 
and which was promised by former SCH CEO Eugene Suksi.  Mr. Suksi told 
me that the accountant was the appropriate person to show me SCH 
financial documents. Subsequently, Regional President Mike Cohill, Mr. 
Suksi, and current interim SCH CEO Linda Horn have all blocked this 
meeting, unless a Sutter Health employee is also present. Remember 
Sutter Health does not own Sutter Coast, but they are attempting to take
 hospital ownership. 
 In addition,
 Linda Horn has not responded to my requests to learn who has been 
invited to participate on The Camden Group's "steering committee."  The 
SCH Board has not even discussed the concept of a steering committee, 
much less discussed or approved the process by which community members 
would be selected to participate on the committee. However, numerous 
community members have told me they have received invitations to sit on a
 steering committee related to Sutter Health's Strategic Options Study.
In 
light of these facts, I would ask the Supervisors, and anyone else who 
Sutter has invited to participate on the steering committee, to consider
 the following:
1.
  Mandate that your participation in a hospital study be preceded by 
Sutter Health releasing the meeting minutes and the financial data for 
the hospital.  We applaud Supervisor Finigan's call for Sutter Health to
 release this information, but three weeks later, Sutter has released 
nothing.  Be aware that study of SCH financial data will require 
considerable time by an independent accounting group with access to 
detailed records, not just summary information provided  by Sutter 
Health.
2.
  Participate in the study only as it was originally designed and 
approved by the hospital Board-with collaborative funding and an 
independent consultant.  Community participation at the outset would 
ensure that the consultant candidates are selected and approved by the 
community, not by Sutter Health, as was the case in the current study. 
 (Only 3 community members selected The Camden Group to perform the 
study, after the first six local residents initially approached by the 
hospital Board refused to participate, over concern the study was not 
legitimate).
3.  Ask
 Sutter Health to stop using the word "independent" to describe the 
current study.  As pointed out by a community member who was asked to 
participate on the steering committee, the current process is clearly 
not independent and should not be described as such.
4.  Put
 the Sutter hospital study on the Agenda for a special meeting of the 
Board of Supervisors, to be held during the evening to allow maximum 
community participation.  You may not be aware that some of the 
individuals who spoke in favor of Sutter Health during your 5/28/13 
meeting, including SCH interim CEO Linda Horn, are employed by Sutter 
Health, the corporation which is attempting to take ownership of locally
 owned Sutter Coast Hospital.
Finally, 
please consider the motivation behind the two sides of this conflict.  
Sutter Health is attempting to take ownership of SCH.  It has become 
increasingly clear that Sutter Health wants to downsize Sutter Coast 
Hospital in order to receive higher payments for the treatment of 
Medicare patients.  If Sutter Health will allow me to release the audio 
recording of Mike Cohill, Sutter Health Sr. Vice President, you will 
hear information which supports this contention.  The local 
hospital Board and Sutter Health have not responded to the physicians' 
resolution to expand services to improve the hospital, nor to our "no 
confidence" vote in Critical Access designation at Sutter Coast.
We
 believe very strongly that Critical Access designation will harm the 
economic development and the residents and visitors in Del Norte and 
Curry counties, especially the elderly, poor and chronically ill.
Thank you for your consideration.
Sincerely,
Gregory J. Duncan, M.D.                                                                                              
Chief of 
Staff                                                                    
                                                 
Sutter Coast Hospital     
Kevin Caldwell, M.D.
Board Member
Del Norte 
Healthcare District