After a conflict of interest involving three board members surfaced last week, the Eden Township Healthcare District again delayed the sale of the San Leandro Surgery Center to Sutter Health’s Eden Medical Center.

A plan was approved last year to sell the District’s investment in the facilty. It was agreed that the District would receive more than $1 million for its stake in the surgery center. However, it last week it emerged that three physicians who are on the Board of the District had earned income during the past year from parties involved in the possible transaction. The physicians were asked to recuse themselves from the vote.

As the Board needs at least a quorum of three members to vote on such issues (there were five members present), the Board decided to delay the sale’s approval for another month.

The Center is at East 14th Street and has a medical staff of 60 physicians who perform about 4,000 surgeries each year.

The Healthcare District acquired a limited partnership in the center when it bought San Leandro Hospital from Triad Healthcare back in 2004. While the District has no say in running the center, it is entitled to some of the revenue generated from the profitable operation of the Center. As the Center has not been profitable, the District agreed to sell its interest.