HAYWARD, Calif. — St. Rose Hospital is struggling financially and is looking to be absorbed into a larger health care system instead of remaining an independent, not-for-profit hospital.
Late last month, Garrett Contreras, chair of St. Rose’s Board of Directors, told the Alameda County Board of Supervisors that the hospital is working with health care consulting firm Kaufman Hall to find out what the communities needs are, as well as find a partner, such as Alameda Health System, that can help it continue operating in the community instead of having to shut down.
“We already have what I refer to as a health care desert in Hayward,” Contreras told the supervisors. “That was compounded when we lost an (emergency room) when Kaiser Hayward moved to St. Rose Hospital.”
The hospital’s financial challenges arise from its role as a safety net facility, serving a significant number of Medi-Cal and uninsured patients. These challenges were exacerbated by the onset of the COVID-19 pandemic, which led to a nationwide drop in hospital patient volumes that have yet to rebound.
The decision to partner with a larger health care system was based on the recommendations in a study on the hospital’s future sustainability, conducted by the health care consulting firm Innova Group. That report stated that option would benefit the service area and surrounding hospitals more than closing the hospital, which would likely overwhelm emergency departments in San Leandro, or realigning services.

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