Daniel Freeman Marina Hospital
Harris Koenig
4650 Lincoln Boulevard
Marina del Rey, CA  90292

Via facsimile:  (310) 574-7854 and (310) 419-8273

9/27/02

Dear Mr. Koenig,

This letter is in addition to the letter written on our behalf from Consumer’s Union dated 9/26/02.

Tenet has stated that due to financial hardship the Daniel Freeman Hospital must close. Therefore, we are asking the following questions for clarification. We would like to know the capital expenditures and profit and loss projections needed to keep this hospital open.

   9) How much cash is required for capital improvements over the next ten years in order to provide first-rate services and facilities?

Have you drawn up an itemized budget and timetable for necessary capital improvements including earthquake requirements?

10) Have you drawn up any pro-forma Profit & Loss statements projecting future financial performance for this sized facility given the known population increase and demographics coming online with the Playa Vista build-out?

Have you made projections using alternate scenarios, e.g., with and without the Chemical Dependency and Psyche units?

Have you analyzed the profitability of the hospital with various services added or subtracted?

In order to properly evaluate the decision whether or not to close the facility, or even whether to sell it, these studies are essential. We would like our financial consultants to review and comment on the data that is so critical to the decision.

Sincerely,

Julie Inouye
SOMH Coalition
PO Box 5393
Playa del Rey, CA 90296
310.306.1487
310.306.5045 Fx

cc:
Lark Galloway-Gillian - CHC
Leslie Bennett -- Consumer’s Union
Patrick Burns, West Los Angeles Metropolitan Alliance
Susan Berke Fogel and Maura Kealey, SEIU
Jim Moore, Villa Marina Council, Inc. of Marina del Rey
Bill Lockyer
Tricia Wynne
Dennis Eagan
Wendi Horwitz
Mark Urban
Margie Lewis
William Barrett
John Murdock