Seismic Compliance

Pressure is building to relax California’s seismic rebuild deadlines for hospitals, but the state may add a stick to go along with that carrot. Robert David, chief deputy director of the Office of Statewide Health Planning and Development, the state agency responsible for hospital building projects, said OSHPD understands pushing back the January 2013 deadline is almost inevitable. Currently, hospitals can win an extension to 2015 for financial reasons.

Some California hospitals may have trouble meeting looming state seismic rebuild deadlines because of a soft credit market and deteriorating revenue, according to a member survey by the state hospital association.

Some 28% of hospitals responding to the survey said they have seen interest expenses rise in the first quarter of 2009, while 45% said their operating margins have declined this year, according to the survey of hospital chief financial officers conducted in April.