STAFF REPORT
Meeting Date:
March 10, 2026
BUSINESS
14 SUBJECT: HOSPITAL ACTION PLAN / FRAMEWORK
RECOMMENDATION: It is recommended that the City Council:
1. Receive public input on a proposed “Mission Hospital Laguna Beach Action Plan / Framework” for the City to approach the possible closure of the Emergency Room and larger site changes at Mission Hospital / Laguna Beach;
2. Discuss, consider, and adopt a preliminary Action Plan; and
3. Determine that the recommended action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as the action consists of receiving information and providing policy direction and does not authorize any physical change to the environment.
SUMMARY OF THE MATTER
This report presents a draft Action Plan / Framework for the City of Laguna Beach to respond to the potential closure of the Emergency Room and other site plan changes at Mission Hospital Laguna Beach in South Laguna. Providence representatives have indicated that significant seismic upgrades may be required to maintain the existing hospital facility beyond the statewide 2030 hospital seismic compliance deadline.
As a result, Providence has discussed potential changes to the hospital campus, including a possible transition away from a full-service emergency department toward a model focused on urgent care and expanded outpatient medical services.
The proposed Action Plan /Framework outlines several potential strategies for the City, including improving community communication, gathering additional data on emergency medical services, exploring legal and policy options related to hospital closures, and evaluating long-term land-use considerations for the hospital site.
There is no immediate fiscal impact associated with receiving the report and discussing the draft Action Plan. Any future consultant services or policy initiatives would return to the City Council for approval.
DISCUSSION
Councilmembers Rounaghi and Whalen serve as the Council’s ad hoc committee on Mission Hospital /Laguna Beach. They and the city manager have been working with Seth Teigen, the Chief Executive of Providence Mission Hospital over the past months as Mission has released information regarding a significant reuse of the hospital site due in part to a 2030 seismic safety deadline for hospitals across the state. The repair of the Mission Laguna Beach hospital to meet new seismic standards is estimated at well over $350 million.
HOSPITAL ACTION PLAN / FRAMEWORK
March 10, 2026
More recent discussions have centered around a preliminary plan by Mission Hospital Laguna Beach to transition away from an emergency room (ER) model to a model that is focused more on Urgent Care as well as offering an array of medical services such as colonoscopies, orthopedic surgeries, and other outpatient services that could be provided in a new Medical Center building that would replace the older hospital building. Mr. Teigen points to Providence’s near-completed Medical Center in Rancho Mission Viejo has a potential model or vision for the Laguna Beach location.
A key issue for the community and the City is the potential loss of the 24/7 emergency room. The ER received about 17,000 visits in 2025, but generally did not receive any patients experiencing either a stroke or a heart attack - as the Mission Laguna Beach hospital is not set up to address those medical situations.
Instead, patients from Laguna Beach who are experiencing a heart attack or a stroke are generally transported to Hoag Hospital in Newport Beach or “Big Mission” in Mission Viejo (or Kaiser in Irvine).
All of that noted, the City Council's ad hoc committee wanted to approach the pending 2030 deadline and possible closure of the ER and Hospital with a strategy. That strategy, written up in the Action Plan / Framework proposed in Attachment #1 would do a number of things:
• Provide the community with more information and feedback about the potential changes to Mission Hospital including regularly updating the community as two decision points; • Have two liaison groups to improve communications;
• Gather and share data as specific as possible as to visits to the ER transports to other hospitals and related urgent or emergent medical care;
• Bring on one or more consultants to assist the city with legal issues associated with hospital closures the removal of an ER, and potential real estate approaches to the site; • Have a legislative strategy that might ask for an extension statewide to the 2030 deadline (although this has been tried in the recent past and not become law), as well as examining whether a standalone ER not affiliated with a hospital is permissible in a community like Laguna Beach; and • Discussions of options for the hospital site including zoning changes, adoption of a specific plan, other medical uses, housing uses, and more.
As noted the draft Action Plan / Framework is Attachment 1.
Council and community dialogue is welcomed about the approach.
FINANCIAL ANALYSIS
The fiscal impact associated with implementing the proposed Action Plan / Framework is currently unknown. The City may retain consultants to assist with legal analysis, healthcare policy review, economic analysis, or land use planning related to the potential changes at the Mission Hospital Laguna Beach campus.
HOSPITAL ACTION PLAN / FRAMEWORK
March 10, 2026
If consultant services are pursued, staff anticipates issuing one or more Requests for Proposals (RFPs). Any resulting contracts would return to the City Council for approval in accordance with the City’s Purchasing Policy and contract authorization thresholds.
Future redevelopment or reuse of the hospital site may also have long-term fiscal implications for the City, including potential impacts to property tax revenue, economic activity, and housing opportunities.
ENVIRONMENTAL ANALYSIS
The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, because the action consists of receiving public input and providing policy direction regarding a preliminary Action Plan and does not authorize any physical development or environmental change.
ATTACHMENTS
1. Hospital Action Plan / Framework (Pgs. 4-5)
Submitted By: Dave Kiff Approved: .David A Kiff
Dave Kiff, City Manager Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Dave Kiff, City Manager Bob Whalen, Councilmember
Alex Rounaghi, Councilmember