By Press Release
Inland Empire Health Plan (IEHP) and L.A. Care Health Plan Take Steps to Provide Financial Support to Contracted Health Care Providers Amid the COVID-19 Pandemic
May 14, 2020 – Inland Empire Health Plan (IEHP) and L.A. Care Health Plan, two of California’s largest publicly-operated Medi-Cal managed health plans, recently announced efforts to provide financial support to hospitals and health systems during the COVID-19 pandemic.
In preparation for a potential surge of COVID-19 hospitalizations, California hospitals preserved their bed capacity and were called upon to increase existing capacity by 40-50 percent through the cancelation and/or postponement of non-emergent procedures. This action created significant financial pressure on provider organizations, drastically reducing revenues at a time when expenses for personal protective equipment and supplies increased – and are in short supply.
To strengthen their contracted hospitals’ abilities to respond to the COVID-19 pandemic, IEHP is amending its contracts to include a capitation feature that will pay a facility the hospital’s expected net patient revenue for IEHP Medi-Cal members or their monthly claims’ average for calendar year 2019, whichever is greater. IEHP is expecting to provide more than $90 million in support to providers during their pandemic response efforts.
“Our health care provider partners have demonstrated their unwavering commitment to ensuring we are all healthy and safe,” said Jarrod McNaughton, IEHP CEO. “As a member of the health care community, I believe we all have an obligation to support each other, especially our frontline caregivers, during these challenging times.”
L.A. Care’s efforts have focused on accelerating claim payments to hospitals, with $85 million in payments made on top of its typical claims processing amounts of $200 million. This improved flow is due to a new standard of payment for electronic claims within five days, and for paper claims within 10 days during the COVID-19 pandemic.
“Our hospitals and other provider partners are heroically serving our members, and we are here to support them,” said John Baackes, L.A. Care CEO. “Over the past few weeks, we have provided $85 million in accelerated claims payments to hospitals, and more than $21 million in advanced incentive payments to individual primary care physicians and FQHC clinics.”
This reduction in accounts receivables for many safety net hospitals is critical to support their operations and maintain staffing levels at a critical point as the number of COVID-19 cases is anticipated to plateau.
“We are tremendously grateful for the admirable actions of our health plan partners,” said George W. Greene, Esq., president/CEO of the Hospital Association of Southern California (HASC). “The efforts of IEHP and L.A. Care are helping to lead our hospitals and communities down a more prosperous path, and it’s HASC’s hope that this model will be emulated by other health plans in support of their provider partners.”
At a time when communities are relying on hospitals more than ever to provide care for all and ensure a safe recovery as we work to reopen the economy, hospital leaders are facing tough decisions about layoffs, furloughs, and service reductions. Through collaborative efforts such as these, and the future support of other health plans, our hospitals can focus on what they do best: ensuring the safety and health of the communities they serve.
San Francisco based Stockbridge acquires 100% leased assets in premier IE West location
Cushman & Wakefield’s EDSF also sources acquisition financing for transaction
Cushman & Wakefield announced the firm has arranged the sale of a core industrial portfolio totaling 540,478 square feet in Southern California’s premier Inland Empire West (IEW) submarket. The portfolio consists of two freestanding Class A buildings located a few miles apart at 3351 E Philadelphia St and 4450 E Lowell St in the city of Ontario. The buildings are 100% leased to prominent tenants in the distribution and retail industries.
San Francisco based Stockbridge acquired the two-property portfolio from Principal Asset ManagementSM a global financial and investment management firm. The portfolio sold for $142.25 million.
Jeff Chiate, Jeffrey Cole, Rick Ellison, and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group—West represented the seller in the transaction. The firm’s Phil Lombardo, Chuck Belden and Andrew Starnes also provided leasing advisory.
Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (EDSF) team of Rob Rubano, Brian Share, Joseph Lieske, Max Schafer, and Becca Tse collaborated in sourcing acquisition financing for the transaction.
“Stockbridge has acquired an institutional-quality industrial portfolio with a phenomenal infill location combined with strong tenancy and premium distribution features and functionality. Both properties have maintained a historical occupancy of 100% for nearly a decade speaking to the tenant demand for industrial buildings of this quality and location,” said Jeff Chiate, Executive Vice Chair. “Additionally, with current rents below market rate, the buyer has a compelling mark-to market opportunity along with existing durable cash flow, providing a variety of value-add strategies.”
The properties offer convenient access to Southern California’s robust freeway network and other vital nodes of transit such as Ontario International Airport, the Los Angeles & Long Beach Ports, and LAX International Airport (60 miles). Access to a deep labor pool and robust consumer population also makes the region a superior industrial location.
According to Cushman & Wakefield’s latest industrial market report, the Inland Empire West submarket had a vacancy rate of 5.4% in Q1 2024, representing the tightest submarket in the broader Inland Empire market. Additionally, IEW achieved nearly 1 million square feet of positive net absorption (occupancy growth) in the first quarter of 2024.
Stater Bros. Charities, the philanthropic arm of Stater Bros. Markets, partnered with Reyes Coca-Cola Bottling again this year for their Give Back program during National Military Appreciation Month. The program ran for the entire month of May, during which Reyes Coca-Cola Bottling committed to donating $0.25 per eligible product purchased to the Bob Hope USO. Reyes Coca-Cola Bottling donated $15,000, and Stater Bros. Charities matched their donation for a total contribution of $30,000.
A check presentation occurred during a K-EARTH 101 radiothon benefiting the Bob Hope USO. The radiothon took place at the Bob Hope USO at LAX (Los Angeles International Airport) on June 29, 2023, where Stater Bros. Charities and Reyes Coca-Cola Bottling presented Bob Hope USO with a $30,000 check.
Bob Hope USO’s mission is to strengthen America’s military service members by keeping them connected to family, home and country, throughout their service to the nation. The Give Back program is a unique opportunity to show gratitude and support to the brave men and women who risk their lives for our freedoms and to care for their families while they are away from home on deployment.
“Stater Bros. Markets has a long history of supporting veterans, service members, and their families,” said Danielle Oehlman, Director, Stater Bros. Charities. “We are so pleased to partner with our friends at Reyes Coca-Cola Bottling and the USO to give back to those who have given so much for us.”
Lorin Stewart, President, USO West Region, said, “We are deeply grateful to Stater Bros. Charities and Reyes Coca-Cola Bottling for being sustaining partners of the USO. The Give Back program embodies the essence of the USO mission by enabling the community at large to come together to support and give thanks to our armed forces and their brave military families in an impactful way.”
Funds will support the Bob Hope USO and USO San Diego Center operations, including programs and services that strengthen the social, mental, physical, and emotional well-being of local military service members, their families, and their communities.
By Press Release
BDK Logistics Intelligence Fully Leases 114,190 SF Industrial Facility in Corona, CA
Cushman & Wakefield represents landlord in lease in SoCal’s Inland Empire
Cushman & Wakefield announced that BDK Logistics Intelligence, Inc. has signed a lease for an entire 114,190-square-foot industrial facility at 1161 Olympic Drive in Corona, California. Situated in Southern California’s renowned Inland Empire, the building is owned by Monterey Rancho Mirage, LLC, which was represented by Brett Lockwood and Rick Ellison of Cushman & Wakefield in the transaction.
“We are pleased to welcome BDK to the property as a quality industrial tenant that is expanding its presence in the market, which it also currently occupies multiple warehouse facilities,” said Director Brett Lockwood. “Our client was instrumental in helping this deal transact as there were many variables that needed to be navigated which led to this lease coming together quickly and successfully.”
1161 Olympic Drive is a quality freestanding building situated on ±4.8 acres and features 20 dock high loading doors. The property is conveniently located off Interstate 15 near the confluence of SR 91 and is proximate to the extensive freeway network traversing the entire Greater Los Angeles region and into other major markets in and out of state.
According to Cushman & Wakefield’s latest Q2-2023 quarterly report, the Inland Empire industrial market posted an overall vacancy of 3.4% and has recorded more than 2.7 million square feet of positive net absorption through the first half of 2023.
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