REDLANDS SURGICAL SERVICES - Page 65




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          ambulatory surgery center care for all members of the Redlands              
          community irrespective of their ability to pay.”                            
               This proposed finding of fact is not supported by the                  
          record.  Neither before nor after petitioner’s involvement with             
          it has the Surgery Center provided charity care.  Moreover, the             
          administrative record indicates that one aspect of ambulatory               
          surgery centers that makes them attractive investment                       
          opportunities in the first instance is that they boast favorable            
          “procedure and payer mixes”.18  Consequently, it is not apparent            
          from the record to what extent the decision to perform a surgery            
          at the Surgery Center has ever been an “economic” rather than a             
          “medical” decision, or exactly how that situation might have                
          changed after April 1990.                                                   
               Even if we assume, arguendo, that a change in criteria did             
          occur after April 1990, the record does not establish                       
          petitioner’s role in effecting any such change.                             



               18 The administrative record includes an investment summary            
          with respect to SCA and another national health-care provider,              
          Medical Care International, published by Shearson Lehman                    
          Brothers, dated Aug. 7, 1991.  The report states:  “To a large              
          extent the favorable payer mix is a function of the fact that               
          many procedures safely performed on an outpatient basis happen to           
          be those with a young patient population.”  Similarly, in its               
          arguments to justify the Surgery Center’s low rate of Medi-Cal              
          patients, petitioner notes that the Surgery Center does not                 
          perform the types of procedures--emergency room treatments and              
          obstetrics and gynecology--that typically account for a                     
          "substantial majority" of low-income surgical expenses for a                
          community.                                                                  




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