Alameda County Medical Center officials say they have signed a lease agreement that will ensure San Leandro Hospital remains open to the public.
However, they said the hospital will most likely become a physical rehabilitation and urgent care facility instead of its current operation as a primary acute care facility.
Sutter Health recently exercised its option to purchase San Leandro Hospital under a lease option from the Eden Township Hospital District.
Alameda County Medical Center officials said they plan to begin operations at San Leandro Hospital by early 2010.
Wright Lassiter III, the medical center's chief executive officer, said in a statement, "We are pleased that this agreement will allow San Leandro Hospital to remain open and continue to serve residents in the surrounding communities, ensuring local residents have access to quality, affordable health care - something that many in the communities we serve
Lassiter said expanded physical rehabilitation and restorative services at San Leandro Hospital will provide essential treatment for patients recovering from stroke, major traumas or surgery.
He said those services include physical, occupational and speech therapy. The typical stay for that type of treatment is about two to four weeks.
Alameda County Medical Center officials said patients in need of emergency services will be transported by Alameda County Emergency Medical Services to Eden Medical Center in Castro Valley, which is less than five miles away.
They said other patients will be served by St. Rose Hospital in Hayward and Highland Hospital in Oakland.
Lassiter said maintaining emergency and acute inpatient services at San Leandro Hospital would require a significant subsidy, which may not be feasible in the current fiscal climate.
He estimated that an annual subsidy of between $6 million and $10 million would likely be needed to pay for emergency and acute services.