Antelope Valley Hospital in Lancaster had a tumultuous 2015. First, Antelope Valley Healthcare District, a public entity similar to a school district that owns the hospital – was downgraded to “Ba3” by Moody’s Investors Service, a credit rating that falls well into junk bond territory. Then the hospital sued Los Angeles County and its Board of Supervisors for misallocation of funds. In addition, it had major turnover in senior management with three different chief executives. But new Chief Executive John Rossfeld has high hopes for the future of the hospital and district, believing he and his team can turn it around. “I think the hospital has got tremendous potential,” he said. “It’s doing an incredible job right now. I’m hoping to build upon all of that and help the community see what a valuable resource it is for them.” Rossfeld has more than 30 years of experience in hospital administration. He was most recently chief executive of Memorial Hospital at Craig in Colorado but has worked locally at several Southern California hospitals, including Encino Hospital Medical Center and Sherman Oaks Hospital, where he also served as chief executive. Health care management company Alecto Healthcare Services in Irvine hired Rossfeld earlier this month to replace interim Chief Executive Lex Reddy, who is also chief executive of Alecto. In November, Antelope Valley Hospital entered into a management agreement with Alecto, where it was decided that the company would oversee hospital operations and provide the hospital with a chief executive, chief financial officer and chief nursing officer. With top management in place, Rossfeld is now assessing the current state of the hospital and beginning to strategize for the future. The district has $97 million in debt and an upcoming bond maturity, according to Moody’s September report. “Series 2002A bonds have a bullet maturity of $55 million in 2017, accounting for half of AVHD’s unrestricted cash balance,” the report states. To address the liquidity issue, Rossfeld plans to focus on improving cash flow and making sure services are provided in the most cost-effective manner. He said the hospital is looking to refinance its debt, along with other options, including a potential private offering to investors interested in purchasing bonds. Also, the hospital has put a freeze on hiring and has no major construction plans in the works. “As Alecto and I get our feet a little bit more on the ground, we’ll identify what other options or opportunities we might have to expand the level of service to our community,” Rossfeld said.
