MemorialCare, the hospital’s parent system, explored other options before deciding to shut down the facility. In August 2014, MemorialCare announced plans to convert the 73-bed hospital into an outpatient medical campus. The system worked with state lawmakers on legislation that would have allowed a satellite emergency department at the outpatient campus in San Clemente. However, the legislation failed in January. The following week, the San Clemente City Council voted to rezone the San Clemente campus property to require hospital services.



Hospitals need to learn how to control losses due to out-network care where the patient defaults on balances (which will now worsen with the enactment of Surprise Bill laws), how to improve their hospitalist and PCP outcomes by using technology for tighter management and improve the communication/authorization delays with payers to avoid unnecessary denials.