Beginning July 1, 2020, with district voter approval, the Mendocino Coast Health Care District Board entered into a 30-year lease agreement with Adventist Health, running through June 30, 2050. The District retains ownership of the hospital facilities (plant, property, and equipment) at 700 River Drive, Fort Bragg, CA, acting as lessor, while Adventist Health operates the hospital as lessee.

Under the terms of the lease, the District is responsible for the cost of maintenance and repair of the hospital facilities in order to retain the license for operation of the Mendocino Coast Hospital as required by the California Department of Health and Information Access - HCAI. Adventist Health provides regular Capital Expenditure reports for MCHCD Board approval.

Key terms of that lease:

• Seismic Compliance (Section 7.2.1): The District (Landlord) must prepare a committed plan to achieve seismic compliance for improvements by January 1, 2030, to Adventist Health's (Tenant's) reasonable satisfaction.
• Improvement Projects (Section 7.3): The Tenant may perform any improvement projects it deems necessary, and need only keep the Landlord "reasonably informed" of projects and their costs. The Tenant holds primary authority to determine what projects are necessary.

Adventist Health Lease Agreement.effective.7.1.2020.pdf

Health Care District Enabling Legislation: Ca. Health and Safety Code §32000 et seq.