California Hospitals Brace for Earthquake Upgrades

Legislative mandates requiring the state's hospitals to replace or retrofit buildings has caused fear and trembling in the industry ever since the Northridge earthquake knocked 23 facilities out of commission in 1994.

The latest Rand Corp. report in 2007 estimated the costs at $110 billion. The figure did not include financing charges, which could double it. The California Hospital Association says that 66 percent of hospitals in the state are operating in the red.

Nonprofits Scripps and Sharp medical systems rely on philanthropy and bond markets. And others aren't sufficiently creditworthy to qualify for revenue bonds.

Full-text article by Ned Randolph is available via the San Diego Business Journal, 5.19.08.