The future of the El Camino Hospital District is up for discussion this afternoon, at a meeting of the Santa Clara County Local Agency Formation Commission.

At the Aug. 1 meeting in San Jose, officials from LAFCO are set to vote on whether to approve the Audit and Service Review of the El Camino Hospital District -- a report which finds the hospital lacking in transparency and in need of many reforms.

A story on the meeting, which occurs after the Voice's press deadline, will be posted online at mv-voice.com.

Once the report is approved, the hospital district will have between 12 and 18 months to follow the report's recommendations or rectify the issues identified -- or risk sanctions, which could range from LAFCO officials redrawing what is known as the district's "sphere of influence," to (at the most extreme) the dissolution of the district.

Though edits have been made to the audit, originally released in late May, the tone of the document remains. It finds that it is very difficult do distinguish between what is done with district money, which is generated by the taxpayers living within the district, and the corporation's money, which is generated through hospital operations.

The audit also finds fault with the district's purchase of the Los Gatos Community Hospital campus, a move that expanded El Camino well beyond the boundaries of the El Camino Hospital District.

"While the opening of the Los Gatos Hospital may make business sense for the Corporation, that action redefines the mission of the Corporation -- and, indirectly, the District -- in a manner that is wholly inconsistent with the intended purpose of the District," the report states.

One issue likely to come up at the meeting is whether the district board and hospital corporation board should continue to be composed largely the same group of people. Some critics of this system have said it makes it impossible for each board to act impartially when decisions it is making may have an impact on the district or on the corporation, depending upon which board is making decisions at a given time.

Should the report be approved, LAFCO will be recommending that the district "implement improvements in governance, transparency and public accountability" as outlined elsewhere in the 103-page document.

If those recommendations cannot be accomplished within 12 to 18 months "or if the Corporation continues to purchase property outside of the District boundaries, (LAFCO will) request that that the District Board initiate changes to the governance structure. If such changes are not initiated within six months of the request for the governance change" LAFCO could begin actions to dissolve the district.

The meeting begins at 1:30 p.m. today, Aug. 1, at the Board Meeting Chambers located at 70 W. Hedding St., First Floor in San Jose.

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