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Epic Fail: For-Profit Hospital Closes in the Middle of Surge

If you ever need to know why someone would argue against the “free market” concept when it comes to hospitals, medical centers or clinics, look no further than the building on the corner of San Vicente and Olympic boulevards in Los Angeles. For more than half a century, locals knew it simply as Midway Hospital. More recently, it was Olympia Medical Center. Soon, you can call it closed in the middle of a pandemic. On Dec. 31, Olympia’s corporate owner, Irvine-based Alecto Healthcare, announced that it would shutter the 72-year-old hospital on March 31. Alecto’s statement indicated the move was being made “to allow for substantial renovations” in order to “better serve the healthcare needs of the community.” In truth, Alecto, a for-profit company, had already reached a deal to sell off the property to UCLA Health. The university confirmed the sale but was vague about what it’ll do with the building or the surrounding grounds.

Amid COVID-19 surge, an L A hospital set to close its doors

When healthcare workers at Olympia Medical Center reported for work on New Year’s Eve, they were prepared for another grueling day of patient care amid L.A.’s worsening COVID-19 surge. What they weren’t prepared for was the laminated paper taped to the front door. “Olympia Medical Center has elected to voluntarily suspend all patient care services, including the emergency department and all emergency medical services, as of 11:59 p.m. on March 31, 2021,” the notice said. Employees were outraged, blindsided and concerned, with one medical staff officer calling it a “terrible public health mistake” to close an L.A. hospital in the midst of the pandemic.

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