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County Retains Firm to Conduct Financial Analysis of Valley Medical Center

Alvarez & Marsal to Conduct Thorough Review

SANTA CLARA COUNTY, CALIF.— Today, County of Santa Clara County Executive Jeff Smith announced that global professional services firm Alvarez & Marsal Holdings LLC has been retained to conduct a thorough financial analysis of Santa Clara Valley Medical Center. The contract in the amount of $100,000 is for a term of one year. The action was taken so the County can gain a better understanding of the hospital’s fiscal health.

“We are faced with a projected deficit of $250 million for the fiscal year which begins in July,” said Smith. “The County’s General fund historically has subsidized Valley Medical Center. We need to have a clear picture of the overall financial health of the hospital so we can determine how to best structure it to be self-supporting.”

George Pillari, one of the managing directors of Alvarez & Marsal, will lead the initial review of VMC’s financial status.

“We are bringing in a team to conduct a thorough analysis of the financial structure not to run the hospital as has been mis-reported in the press,” said Smith. “In the interim, the transition team will be comprised of County Executive managers. We will decide on next steps, once the analysis is complete.”

Media Contact: Gwendolyn Mitchell/Laurel Anderson, Office of Public Affairs, (408) 299-5119
Posted: March 11, 2010