Thirty-Five Years of Seismic
Safety Laws Leave Hospitals
on Shaky Ground

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HAZUS Re-Evaluation Program

On November 14, 2007, a new re-evaluation tool, developed by the Federal Emergency Management Agency (FEMA) provided new hope to cash-strapped hospitals with seismically challenged buildings. This new software tool referred to as HAZUS, uses a more sophisticated topography of California’s seismic zones and measures seismic risk based on a building’s structural integrity, proximity to active faults and underlying soil content. Hospitals have until July 1, 2009 to request that their buildings be reassessed by HAZUS. Buildings determined to pose a low seismic risk under this new state-of-the-art methodology may be reclassified to SPC-2 and will have until 2030 to comply with the state’s structural seismic safety standards. OSHPD officials estimate that this new tool could save the hospital industry as much as $4.6 billion. Participation in the HAZUS program is optional.

All Three Coachella Valley Hospitals Have Requested Seismic
Re-Evaluation – Results are Mixed

Upgraded seismic ratings of Valley hospitals can be found in the
December 18, 2008 HAZUS Re-Assessment list at:
http://www.oshpd.ca.gov/fdd/Regulations/Triennial_Code_
Adoption_Cycle/HAZUS_ Summary_Report.pdf

Desert Regional Medical Center — The hospital’s North Wing and
East Tower have both been re-evaluated under HAZUS to SPC-2 ratings – giving the hospital until January 1, 2030 to be brought into compliance with the Alquist Act or be removed from acute-care service. As of December 18, 2008, additional information is being requested by OSHPD before the seismic status of the main hospital building with its additions can be considered for re-evaluation.

Eisenhower Memorial Hospital — The North, Center, and South Wings all retain their original SPC-1 ratings. It should be noted, however, that in January 2007, Eisenhower held a groundbreaking ceremony for its new $212.5 million Walter and Leonore Annenberg Pavilion that is scheduled to open in 2010, and will meet the California state requirements for seismic safety mandated by Senate Bill 1953.

John F. Kennedy Memorial Hospital — Both buildings, previouslyrated as SPC-1, have been re-evaluated through HAZUS to SPC-2 ratings – giving the hospital until January 1, 2030 to be brought into compliance with the Alquist Act or be removed from acute-care service.

In Conclusion
Although for 35 years, public policy efforts in California have worked to increase the seismic safety of hospital infrastructure, the industry still seems to be on "shaky ground" financially--constantly attempting to meet and finance compliance deadlines. According to a 2007 Rand Corporation report, new hospital buildings are extremely expensive – at a cost of $1,000 per square foot for a finished facility, they represent some of the most expensive infrastructure in the built environment. Replacement of individual buildings can be equally costly, because there are usually connecting buildings which make it almost impossible to keep open during renovation.

Assuming the California Hospital Association figures are accurate,
66 percent of hospitals in the state are already operating in the red — hardly the fiscal picture of an industry strong enough to absorb the high costs of infrastructure replacement in today’s economic downturn. As for consumers, hospital construction/renovation costs can result in large increases in patient costs — one more thing that consumers don’t need in a shrinking economy.

For now, it appears that the HAZUS re-evaluation program is providing
temporary relief for the hospital industry in California as well as consumers.
OSHPD estimates that HAZUS will help the hospital industry save as much as $4.6 billion — funds that could mean the difference between financial solvency and facility closure for many hospitals in the state. For consumers trying to keep health care costs down and maintain access to health care facilities, that’s good news. What the future will bring is anyone’s guess. One thing is for sure — if the “big one” doesn’t occur by 2030 and the economic downturn continues, we can certainly expect more seismic deadline extensions.

Web Resources:

www.oshpd.ca.gov

http://www.capitolweekly.net/article.php?xid=wswqz4ddadc9f3

http://www.oshpd.ca.gov/fdd/sb1953/sb1953rating.pdf

http://www.oshpd.ca.gov/fdd/sb1953/seismicext.pdf

http://www.oshpd.ca.gov/fdd/Regulations/Triennial_Code_ Adoption_Cycle/HAZUS_Summary_Report.pdf

http://www.calhealth.org/public/press/Article/103/RAND%20
Report%20SB%201953.pdf

*A special note of appreciation goes to David Byrnes, Information Officer, Public Affairs Department of the Office of Statewide Health Planning and Development for assistance in providing resources for this article.

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