LAKE COUNTY, Calif. — The Board of Supervisors on Tuesday took action to approve the formation of the Lake County Hospital Improvement District, reported to be the first district of its kind in California.

The board voted 4-1, with Supervisor Michael Green voting no, to approve the district’s resolution of formation.

After the vote Board Chair Bruno Sabatier said it was “a first in the state of California,” adding, “Let’s see how this works out for the benefit of the community.”

Deputy County Administrative Officer Benjamin Rickelman’s written report to the board for the meeting explained that the district will be a “business-based assessment of general acute care hospitals in Lake County” — Adventist Health Clear Lake and Sutter Lakeside.

Rickelman said the hospitals petitioned the county to form the district by utilizing the Property and Business Improvement Law of 1994.

The district’s purpose is to utilize the assessment to increase the non-federal share of Medi-Cal reimbursement, which Rickelman said will then increase the federal share of Medi-Cal reimbursement at an anticipated 2:1 ratio.

Rickelman and hospital officials who presented to the board emphasized that the assessment will not be added to the cost of care for patients, but will be borne directly by the hospitals, who will assess themselves.

He said the assessment will be 6% of the hospitals’ net patient revenue, which is projected to raise $16.9 million on average per year for its initial five-year term, which will run from Jan. 1, 2025, to Dec. 31, 2029. It can then have 10-year renewals.

The district is similar in form and function to the Lake County Tourism Improvement District, which also had an initial five-year term and now is in a 10-year renewal period.

“The Hospitals plan to utilize the increase in federal Medi-Cal payment for an increase in services, which will also provide financial stability to the Hospitals. Medi-Cal reimbursement is generally lower than Medicare and private insurance. Approximately 53% of Lake County residents utilize Medi-Cal in some capacity,” Rickelman wrote.

Rickelman said the county would retain a 1% of the collected assessment to cover the district’s administration costs.

The district “will also submit an annual plan to the Board of Supervisors outlining how the increase in Medi-Cal reimbursement was utilized, a comparison of Medi-Cal charges from the Hospitals versus Sutter and Adventist hospitals systemswide, and volume of Medi-Cal services for inpatient and outpatient services,” Rickelman said.

“This is a four-step process and thankfully we are at the last step,” Rickelman told the board on Tuesday.

Those four steps included the initial resolution of intention, presented Sept. 10, at which point the board majority voted to advance it; a public meeting on Oct. 22; a public hearing on Nov. 5; and the Dec. 10 resolution of formation.

Rickelman said that, after the board approved the resolution of formation, the matter would go to the California Department of Public Health for consideration. It also will need to be reviewed by the Centers for Medicare & Medicaid Services.

Supervisor Jessica Pyska offered the resolution, with the board voting 4-1. The lone dissenter was Supervisor Michael Green, who said his no vote was to be consistent with prior votes on the issue.

The initial presentation

Hospital executives and the legal counsel for their efforts to form the district spoke to the board first on Sept. 10.

At that time, Sutter Lakeside Chief Administrative Officer Tim Stephens said forming the district was a joint action of the two hospitals, with the idea based on building sustainability in the challenging environment of rural health care.

He said they were looking at “how do we create the next 70 years of health care in the community,” Stephens said.

Chuck Kassis, Adventist Health Clear Lake’s administrator, said the two hospitals run at a deficit annually and so they need other revenue streams, which aren’t going to come from the government or a large source of commercial patients.

“We have to be creative in how we look at things and this is one way that we can do it without impacting the community,” said Kassis.

He said they will pursue dollars the state could access but doesn’t in the hopes of getting to a break even point.

Among the priorities the funding would be used for are seismic retrofits, which have to be completed by 2030, otherwise, the state could shut them down, Kassis said. In the case of Sutter Lakeside, which is in its third phase of the project, Stephens said the cost is expected to be $15 million.

In addition to seismic upgrades, both hospitals plan to work on projects such as upgrades for imaging services and community investments.

Stephens said when the hospitals are losing money and having to be supplemented by the parent company, they can’t make investments in the community.

In 2022, Sutter Lakeside lost $5.5 million in operations, said Stephens, noting that being able to sustain operations means the hospital can go into growth mode and do more for the community.

“We’re currently restricted on capital investments,” Stephens said.

Supervisor Green gave them an “A-plus for creativity” but opposed the plan because he didn’t believe the proposed district met the state guidelines. He also faulted the hospitals’ business model for lack of sustainability, and cited a lack of tangible assets and a plan for the district.

James Gjerset, a Texas-based health care attorney who appeared along with Kassis and Stephens, said that he had done many such programs across the United States, and some already are 25 years old, so he didn’t believe they would go away.

Critical access hospitals such as Adventist Health Clear Lake and Sutter Lakeside are operating “on shoestrings and mousetraps,” so the district will generate additional revenue to serve the community, Gjerset said.

Supervisor EJ Crandell, mentioning the tourism improvement district, said he saw the hospital district as similar. “I think it’s a good idea.”

“The impact to the patient will be zero. Just say that a lot,” said Supervisor Pyska, adding that with these expansions and investments, there will be a lot of benefits for patients.

Stephens noted during that conversation that the community benefit dollars Sutter spent across its system in 2023 was about $800 million.

“The amount of care that Sutter is providing that's not compensated for is enormous,” he said.

Kassis said their mission would not change, with or without the new district assessment. “These are dollars that are already there that we will be able to get back without a cost to the community.”

That’s compared to a bond — an alternative that Green had favored in his comments — in which something needs to be leveraged, Kassis said.

Pyska said she appreciated the collaboration between the hospitals. Stephens said the two hospitals have been discussing how to address other issues.

“It’s true and genuine for what we’re trying to do for the community,” Stephens said.

At that point, Kassis said he planned to return to the city of Clearlake to get its final resolution. Stephens also planned to seek a resolution from the city of Lakeport, although it’s not needed because it doesn’t have a hospital within its boundaries.

At that meeting, Green voted against the plan, which was why he chose to continue to vote against it this week.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, and on Bluesky, @erlarson.bsky.social. Find Lake County News on the following platforms: Facebook, @LakeCoNews; X, @LakeCoNews; Threads, @lakeconews, and on Bluesky, @lakeconews.bsky.social.

On Thursday, Rep. Mike Thompson (D-CA-04) announced that President Biden has signed the bipartisan Federal Disaster Tax Relief Act (H.R. 5863) into law.

The bill includes Rep. Thompson’s legislation that exempts thousands of qualified wildfire victims in California from having to pay federal income tax on their settlement money or pay tax on attorney fees included in the settlement.

This relief applies retroactively to qualified victims.

“Federally declared wildfires in 2015, 2017, and 2018 devastated entire communities across my district and across the state of California. Entire towns were destroyed. Thousands of people lost homes, and dozens of people lost their lives,” said Thompson. “While the courts eventually created a path to compensation, victims were subjected to unfair taxes on their settlement money — money that is meant to help them rebuild their lives.

“In my time working on this issue, I have yet to encounter a single person on either side of the aisle who believes this is fair. Today marks the day we finish righting this wrong,” Thompson said.

“Thank you, President Biden, for signing my legislation into law. While no fire victim can ever be made truly whole, this law will provide needed and deserved relief to thousands in our community and across our country,” said Thompson.

Rep. Thompson serves as the Ranking Member of the Subcommittee on Tax for the Ways and Means Committee.

He introduced the original legislation with Rep. Doug LaMalfa (CA-01) in the House of Representatives to provide tax relief to PG&E fire victims in the 117th Congress and has worked with Senator Padilla and Rep. LaMalfa to advance the legislation.

Earlier this year, Rep. Thompson and Rep. Greg Steube (FL-17) led a bipartisan group of 218 Members of Congress to successfully advance a discharge petition which forced House Speaker Mike Johnson to bring the Federal Disaster Tax Relief Act to the House floor for a vote.

The historic advancement of Rep. Thompson and Rep. Steube’s petition marked only the third time a House discharge petition had succeeded in the 21st Century. H.R. 5863 passed the Senate earlier this month by unanimous consent.

The Federal Disaster Tax Relief Act excludes from taxpayer gross income, for income tax purposes, any amount received by an individual taxpayer as compensation for expenses or losses incurred due to a qualified wildfire disaster (a federally declared disaster declared after 2014 as a result of a forest or range fire).

It also excludes relief payments for losses resulting from the East Palestine, Ohio, train derailment on Feb. 3, 2023 and designates Hurricane Ian, among other federally declared disasters, as a qualified disaster for the purposes of determining the tax treatment of certain disaster-related personal casualty losses.

Thompson represents California’s Fourth Congressional District, which includes all or part of Lake, Napa, Solano, Sonoma and Yolo counties.

CLEARLAKE, Calif. — Clearlake Animal Control has dozens of dogs ready for new homes.

The shelter has 47 adoptable dogs listed on its website.

This week’s dogs include “Shayla,” a 2-year-old female Doberman pinscher mix with a chocolate and beige coat.

The shelter is located at 6820 Old Highway 53. It’s open from 9 a.m. to 6 p.m. Tuesday through Saturday.

For more information, call the shelter at 707-762-6227, email This email address is being protected from spambots. You need JavaScript enabled to view it., visit Clearlake Animal Control on Facebook or on the city’s website.

This week’s adoptable dogs are featured below.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, and on Bluesky, @erlarson.bsky.social. Find Lake County News on the following platforms: Facebook, @LakeCoNews; X, @LakeCoNews; Threads, @lakeconews, and on Bluesky, @lakeconews.bsky.social.

 

LAKE COUNTY, Calif. — A late fall rainstorm arrived in Lake County on Wednesday night, with forecasters saying that heavy rain is expected Friday and Saturday.

The National Weather Service said rain and moderately gusty south winds were building overnight.

At the same time, forecasters said a stronger storm system remains on track to hit the area
Friday into the weekend with higher wind and more sustained rain.

The National Weather Service forecast anticipates up to half an inch of rain in Lake County overnight, with less than half an inch on Thursday.

On Friday, patchy fog is expected in the morning, with up to 2.5 inches, and another 2 inches expected on Saturday.

There are continuing chances of rain from Tuesday through Wednesday.

The forecast also calls for gusty winds from Thursday through Saturday night.

Chillier temperatures are expected over the next several days, with daylight highs in the 40s and then returning to the 50s next week, and nighttime conditions in the 30s and low 40s.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, and on Bluesky, @erlarson.bsky.social. Find Lake County News on the following platforms: Facebook, @LakeCoNews; X, @LakeCoNews; Threads, @lakeconews, and on Bluesky, @lakeconews.bsky.social.

KELSEYVILLE, Calif. — Lake County 4-H members will lead a special ceremony of remembrance at the Kelseyville Cemetery on Saturday, Dec. 14.

It will take place from 9 to 10 a.m. at the cemetery, located at 3375 Bell Hill Road.

The ceremony will honor the service and sacrifice of our nation's veterans.

This year, a total of 530 veterans' graves will be adorned with wreaths in a tribute of remembrance and gratitude.

The ceremony will be entirely led by local 4-H youth from Big Valley 4-H, Blue Heron 4-H and Scotts Valley 4-H.

The event will feature an a cappella rendition of the National Anthem performed by “My Divas” and will include an escort provided by the California Highway Patrol and the Kelseyville Fire Department.

Community members are encouraged to attend this moving event, which honors veterans and fosters a spirit of unity and service. Attendees who wish to place a wreath on a grave personally are welcome to do so.

“This day means so much to me because it’s a time for remembering and honoring our veterans,” said Audrey Panella, a long-time participant in the event. “It’s especially special because I get to place a wreath on my uncle’s and great-grandfather’s graves. It’s a way for all of us to come together and say thank you for their sacrifices.”

The success of this annual event is made possible by the loyal support of the Lake County community, whose generous contributions ensure every veteran’s grave receives a wreath. Organizers express their heartfelt thanks to everyone who purchased a wreath to honor our heroes.

All are welcome to attend this ceremony and share in the meaningful act of remembering those who have served.

The Lake County Blue Heron 4-H Club is a dedicated group of young leaders committed to community service and making a positive impact. With a strong belief in the power of service, they aim to unite the Lake County community in support of local causes and to honor our veterans.