San Gorgonio Memorial Hospital is actually composed of 3 related organizations: San Gorgonio Memorial Healthcare District (“district”), San Gorgonio Memorial Hospital (“hospital”), and San Gorgonio Memorial Hospital Foundation (“foundation”). Each organization is a separate legal entity with a distinct purpose for existence, but they are closely related through common control. As a result of this common control, the 3 organizations are represented simply as San Gorgonio Memorial Hospital, with their audited financial statements reported as one consolidated entity.
The district, a local healthcare district formed in 1947, is a political subdivision of the state of California organized pursuant to the Local Health Care District Law (formerly the Local Hospital District Law) as set forth in the California Health and Safety Code. The geographic area that comprises the district, which includes the voting residents who elect the district’s board of directors, encompasses approximately 340 square miles in the northwest portion of Riverside County and includes the cities of Banning and Beaumont, a portion of the city of Calimesa, and the neighboring unincorporated areas of Cabazon, Cherry Valley and Whitewater. Approximately 85,000 residents live within the district boundaries. The district owns the hospital land, building and equipment and leases these assets to the hospital organization to provide healthcare services on the district’s behalf under a long-term lease.
From the Association of California Healthcare Districts
Healthcare districts are public entities that provide community-based healthcare services to residents throughout the state.
They respond to the needs in their district by providing a range of services, which may include a hospital, clinic, skilled nursing facility or emergency medical services, as well as education and wellness programs.
Each of California’s healthcare districts is governed by a locally elected board of trustees who are directly accountable to the communities they serve.
The hospital is a California nonprofit 501(c)(3) public benefit corporation organized for the charitable purpose of providing healthcare services. It operates the 79-bed general acute care hospital owned by the district. The hospital leases the hospital land, building and equipment from the district under a long-term lease. The hospital holds the licenses and permits to provide healthcare services on behalf of the district.
The foundation is a California nonprofit 501(c)(3) public benefit corporation organized for the charitable purpose of promoting and supporting the hospital and district. The foundation’s primary activities consist of raising funds through donations, grants and fundraising activities for the sole benefit of the hospital and district. The foundation’s unrestricted funds are distributed to the district and/or the hospital in amounts and in periods determined by the foundation’s board of trustees, which may also designate the use of these unrestricted funds for specific land, building or equipment acquisitions, or for other specific purposes. The foundation has over 1,200 donors and an advisory board of up to 20 trustees. The foundation has raised over $8 million for the hospital since 1996.