Daily Business Report: Monday, Feb. 7, 2022
California’s no-bid contract with Kaiser
Permanente stirs concerns
By Ana B. Ibarra | CalMatters
State health officials have proposed a no-bid contract that will allow Kaiser Permanente to expand its Medi-Cal coverage area, triggering anger from other health insurance plans and questions from a key legislator.
The proposed contract, which would begin in 2024, allows Kaiser Permanente to skip a bidding process required for other commercial insurers to participate in Medi-Cal, the state’s health insurance program for low-income residents. The bidding process for all other insurers starts Wednesday.
As first reported by Kaiser Health News, the state’s special deal with Kaiser Permanente has raised concerns among other Medi-Cal plans. They say Kaiser Permanente is getting special treatment that bypasses state procedures and allows it to cover only certain portions of the population.
Nonprofit local health plans, which cover the majority of Medi-Cal enrollees, estimate that Kaiser’s expansion could strip them of up to 30% of their members in some counties.
“Offering a statewide, no-bid contract on a silver platter to a commercial plan undercuts the local public health infrastructure while paving a path for large-scale corporate health plan expansion in Medi-Cal,” Linnea Koopmans, chief executive officer of the Local Health Plans of California, said in a statement. Her organization represents 16 local health plans, which will not have to bid for a contract since they are nonprofits.
The contract would have to be approved by the Legislature and federal officials before it would be implemented.
TOP PHOTO: The Newsom administration has struck a Medi-Cal deal with Kaiser Permanente. (Image via iStock)
300,000-square-foot luxury apartment complex
in Bankers Hill slated for move-ins in April
Pre-leasing is underway at 525 Olive, a nearly 300,000-square-foot luxury apartment community in Bankers Hill being developed by global real estate leader Greystar in conjunction with St. Paul’s Episcopal Cathedral.
Offering panoramic views of Balboa Park, the more than $100.2 million project is slated for completion in April 2022, with move-ins to begin in April.
Greystar – a residential real estate manager and developer, acquired the .59-acre parcel of land from St. Paul’s in 2019 and construction started shortly afterwards.
As part of the transaction, the church will occupy 10,000 square feet on 525 Olive’s first floor and 8,500 square feet on the bottom level as well as use of the underground parking garage.
The 204 total residences will include studio, one-, two-, three-bedroom floor plans, plus penthouse suites, with homes spanning 533 to 1,625 square feet. Rents will start at $2,440 per month.
The builder for the project is Greystar Construction Group, with architecture by Joseph Wong Design Associates and interior design by the Jules Wilson Design Studio.
San Diego is future home of littoral combat ship
USS Savannah, commissioned on Saturday
The Navy commissioned the future USS Savannah as the newest Independence variant littoral combat ship during a ceremony Saturday in Brunswick, Georgia. USS Savannah will homeport at Naval Base San Diego.
The ship’s sponsor is Mrs. Dianne Davison Isakson, wife of the late Johnny Isakson, former Senator from Georgia.
“The city of Savannah, Georgia, has played an important role in our nation’s naval history,” said Secretary of the Navy Carlos Del Toro. “I have no doubt the sailors of USS Savannah will carry on the fighting spirit of this city and will play an important role in the defense of our nation and maritime freedom.”
Savannah is the 14th Independence variant LCS and the sixth ship to bear its name. LCS is a fast, agile, mission-focused platform designed to operate in near-shore environments, winning against 21st-century coastal threats. The platform is capable of supporting forward presence, maritime security, sea control and deterrence.
Southwest marks 40 years in pivotal
markets as it plots post-pandemic course
Southwest Airlines is feeling nostalgic
The airline celebrated its 50th anniversary in 2021, as it reached what its leadership sees as a crucial juncture in the airline’s evolution.
As it starts its 51st year, Southwest is making a big push for managed business travel; the airline is growing and revitalizing its fleet as it contines to take delivery of its massive Boeing 737 Max orders; it’s looking to finally see consistency in its Hawaii venture after two rocky pandemic-defined years; and coming off the heels of massive expansion that added 18 new markets, it’s looking to buffer its network by builfinh up frequencies lost to the pandemic and bye edxpansions.
To top it all off, the airline’s longtime CEO Gary Kelly is stepping back and will be replaced by another longtime Southwest executive, Bo b Jordan. Kelly will still continue as executive chairman of the board of directors, which will see him leading the airline’s broader strategy.
Cheryl Wilson retires as CEO of St.Paul’s
Senior Services after 32 years on the job
By Vince Meehan
On Saturday, Cheryl Wilson left her office as the president and CEO of St. Paul’s Senior Services for the final time after 32 years in the role.
Wilson leaves behind a huge legacy as the leader of one of the most prestigious and respected senior services foundations in San Diego.
“It’s been 32 wonderful years. I have enjoyed every day – absolutely the greatest place to work – and the most wonderful people to work with and to serve here at St. Paul’s,” Wilson said. “I’ve spent over half my life here and I think we’ve done some good work.”
Born and raised in Australia, Wilson trained as a nurse in her home country and then traveled around the world as part of her service. It was at this point in her life that she met her husband who was in the military and he convinced her to come to the United States.
“That was the best decision I ever made!” said Wilson as she reflected on the choice that led her to San Diego where she and her husband have resided for over 50 years.
St. Paul’s Senior Services is based in Bankers Hill and is a faith-based nonprofit founded in 1960. It has provided care to San Diego seniors for more than 60 years. Over the years, the foundation has grown to now include three senior living communities, a nursing facility, a senior day program as well as a child care center. In addition, the foundation operates four St. Paul’s PACE (Program of all-inclusive Care for the Elderly) medical centers across San Diego.
Greg Lewis, M.D. elected chief of staff
at Scripps Memorial Hospital La Jolla
The physicians at Scripps Memorial Hospital La Jolla have elected hospitalist and internal medicine specialist Greg Lewis, M.D., as the new chief of staff of the 426-bed campus. Lewis took over as head of the 1,398-member physician team on Jan. 1.
During his two-year term, Lewis will serve as medical staff liaison to Scripps La Jolla’s administrative staff and Scripps Health’s board of trustees. He will play a key role in driving continuous quality improvement in the delivery of health care services to the 155,000 patients cared for annually at the hospital.
He succeeded outgoing Chief of Staff Dale Mitchell, M.D.
Lewis, who is the first hospitalist to serve as chief of staff at Scripps La Jolla, works for Ximed Hospitalists, which provides around-the-clock hospitalist coverage for the hospital.
Lewis has been a member of the Scripps La Jolla medical staff since 2009 and has held numerous leadership positions at the hospital, including chief of internal medicine and chairman of the department of medicine.
MTS unveils new mural designs along
Orange Line Trolley in Southeast San Diego
The Metropolitan Transit System (MTS) has unveiled the first of three new colorful murals that will celebrate diversity, culture, and unity in Southeast San Diego along the Orange Line Trolley. The artist, Maxx Moses, created the colorful designs through the lens of urban surrealism, encapsulating the cultural identities of the people who live in these vibrant neighborhoods. Elected officials and MTS representatives support this project in hopes to inspire more tourism to the area.
The three designs are being painted over a span of six months and will be finalized by May 2022. Each design has different culture and lifestyle-oriented themes: Heartline, Blossom and Seamless.
“We know that our transit system is a vital connection between neighborhoods,” said Sharon Cooney, MTS chief executive officer. “In many ways these murals represent that connection and we believe will make it even stronger. We want to inspire people from all parts of San Diego to come explore these neighborhoods, help businesses nearby and enjoy the meaningful art that will beautify these walls.”
Fern Street Circus to receive $150,000 grant
from National Endowment for the Arts
Fern Street Circus (FSC), San Diego’s original “social circus,” is pleased to announce it has been approved to receive an American Rescue Plan grant from the National Endowment for the Arts (NEA) to help the arts and cultural sector recover from the pandemic. FSC is recommended to receive $150,000, which represents the largest grant the organization has been awarded its 30-year history. In total, the NEA will award grants totaling $57,750,000 to 567 arts organizations in all 50 states, Puerto Rico, the U.S. Virgin Islands and Washington, D.C.
“Our nation’s arts sector has been among the hardest hit by the COVID-19 pandemic. The National Endowment for the Arts’ American Rescue Plan funding will help arts organizations, such as Fern Street Circus, rebuild and reopen,” said Maria Rosario Jackson, chair of the NEA
FSC will use the NEA grant to pay for professional infrastructure, strengthening the core of its operations to better support families in San Diego’s mid-city neighborhoods, particularly in City Heights, with circus instruction and public performance.
Sony buys Bungie in $3.6 billion deal
In a $3.6 billion deal, Sony Interactive Entertainment is acquiring Bungie, the developer of video games Halo and Destiny. Technology companies are increasingly interested in gaming as they look to expand audiences and prepare for future iterations of virtual- and augmented-reality devices. Sony’s North American headquartes is based locally in Rancho Bernardo.
Scripps Research launches first HIV vaccine human trial
San Diego’s Scripps Research has launched the first human trial of an HIV vaccine using mRNA technology from the Moderna COVID-19 vaccine. The technology allows researchers to harness the speed of the existing vaccine’s clinical trials and block the spikes on the HIV virus so it can’t infect cells and spread throughout the body.
Southwestern College allocates $13.8 million
to cover student expenses
Southwestern College will use $13.8 million in COVID-19 relief funds to help pay students’ college expenses in the spring 2022 semester. The funds, which the Chula Vista-based college received as part of the federal Higher Education Emergency Relief Fund, will go toward child care, rent and utilities, car repairs, cost of books, medical expenses and technology, including laptop and Internet fees accrued by students.
San Diego’s BluNalu partners with Japan
sushi operator to supply cultured tuna
Multinational food service company Food & Life Companies (F&LC) announced a new partnership with cultured seafood startup BlueNalu, a San Diego company, to develop a supply chain for bluefin tuna and other sushi-grade seafood. The two companies plan to work together on product development and marketing, as well as supporting a regulatory framework for cell-based seafood production in Japan.
Based in Osaka, F&LC owns the largest number of sushi restaurants in Japan, and operates more than 1,000 restaurants across Korea, Taiwan, Singapore, Hong Kong, Thailand and mainland China.
