Palo Alto Medical Foundation Leases Former Skyview Property to Goodwill Industries for Use as Flea Market and Donor Drop-Off Site

February 8, 2008

Revenue generated from the one-year lease will enable PAMF to donate $125,000 to Healthy Kids of Santa Cruz County

Santa Cruz, Calif. – The Palo Alto Medical Foundation (PAMF), a Sutter Health affiliate that operates the Santa Cruz Medical Foundation, Sutter Maternity & Surgery Center, and the Visiting Nurse Association of Santa Cruz, has finalized a lease agreement with Goodwill Industries of Santa Cruz, Monterey and San Luis Obispo Counties to operate a flea market and donor drop-off site at 2260 Soquel Drive.

The one-year agreement goes into effect on March 1, 2008 and contains a mutual option to renew for an additional 12 months. The flea market is tentatively scheduled to open in early March and will operate on Fridays, Saturdays and Sundays.

“We are pleased to be able to partner with Goodwill Industries to keep a flea market operating in Santa Cruz County,” said Larry deGhetaldi, M.D., president of the Santa Cruz region of PAMF. “This agreement allows the continuation of a community resource that has value to many local residents while a long-term flea market location is identified.”

“Operation of the flea market will help us to support local services that benefit our community, such as providing education, employment and job training services to people with barriers to employment,” said Michael Paul, CEO of Goodwill Industries of Santa Cruz, Monterey and San Luis Obispo Counties. “The flea market is consistent with our other efforts to raise funds through the collection and sale of clothing and household items in a manner that encourages the reuse/recycling of these material resources thereby creating employment that benefits and protects the environment.

“We look forward to operating the flea market for many years to come,” added Paul. “Our agreement with PAMF/Sutter allows us time to find a permanent location for the flea market in Santa Cruz County.”

After purchasing the former Skyview property in November 2007, PAMF/Sutter was approached by a number of organizations and individuals to operate a flea market, but only entered into discussions with Goodwill Industries. As a non-profit organization dedicated to helping the local community, and an organization with the working capital to address potential liability issues, including insurance coverage, Goodwill Industries fit PAMF’s/Sutter’s criteria for a flea market operator at the site.

Revenue generated by the agreement will enable PAMF/Sutter to make a $125,000 donation to Healthy Kids of Santa Cruz County, an organization that offers insurance to children in families at or below 300 percent of the federal poverty level ($63,600 for a family of four). Sutter Maternity and Surgery Center will also make its annual $100,000 donation to Healthy Kids. Since 2003, PAMF and Sutter Maternity and Surgery Center have contributed $800,000 to support children’s access to health insurance through Healthy Kids and Healthy Families, the state program that provides health insurance for children in families at or below 250 percent of the federal poverty level ($53,000 for a family of four).

“We are thrilled to be able to further support Healthy Kids of Santa Cruz County,” said Dr. deGhetaldi. “Healthy Kids plays a vital role in the health of children in our community. Research clearly shows that when children have a primary care doctor who sees them on a regular basis, it reduces the number of visits to hospital emergency rooms for non-urgent conditions, reduces unnecessary hospitalizations and shrinks the health care bills that are ultimately passed onto taxpayers to care for the uninsured. Providing all children with health insurance not only is the socially responsible thing to do but also makes good economic sense.”

“This generous donation from PAMF/Sutter will allow more kids to come off of our waiting list to receive the health care and insurance they need to lead healthier lives,” said Leslie Conner, program director of Healthy Kids of Santa Cruz County. “These new funds are even more critical now that California’s health care reform efforts have failed. With more than 400 kids on our waiting list, Healthy Kids is committed to raising as much money as possible to cover as many local kids as possible. PAMF’s/Sutter’s gift is a huge help.

“We are grateful for their support and applaud their commitment to our community. PAMF’s/Sutter’s innovative partnership with Goodwill Industries, which will allow a flea market to operate in Santa Cruz County, ultimately benefits our community in a number of ways.”

PAMF/Sutter will use the next year or two to develop plans for the site at 2260 Soquel Drive that will help to address the growing health care needs of the community. The acquisition of this property allows PAMF/Sutter to look at providing additional medical office space for physicians, as well as additional diagnostic services and expanded hospital services for the community. Due to a shortage of physicians in the region, PAMF/Sutter is making a concerted effort to bring in additional primary care physicians and medical specialists to replace physicians who are retiring and physicians who are leaving the area.