Palomar Health in North County and UC San Diego Health in La Jolla appear to be working on a joint powers agreement that would allow the two organizations to collaborate closely, though the details of the potential deal remain undisclosed.
Items listed on public agendas this week outline an apparent agreement coming together, though neither party responded Thursday when asked for comment on the matter. If completed, it would be the second time that UC San Diego Health has explored such a collaboration with a North County public health care district.
Tri-City Medical Center in Oceanside publicly chose UC San Diego as a partner in 2023, with the parties proposing a joint powers authority that would start with directors from both organizations and gradually have the university assume all of Tri-City’s assets and liabilities.
While the agreement seemed set to finish in 2023, it was cancelled in July 2024 after the two parties could not find enough common ground on the financial and operational deals of a five-year transition period that was to precede the university assuming day-to-day responsibility for Tri-City.
Tri-City has since brokered a potential lease agreement with Sharp HealthCare, with the pact expected to reach a final agreement this year.
It is unclear what a joint powers agreement between UC San Diego and Palomar Health, which operates hospitals in Escondido and Poway, would look like.
Palomar has recently found itself in dire financial straits as it attempts to stem significant financial losses spurred by inflation, overall wage increases and government reimbursements that do not keep up with the costs of doing business.
The inland North County public health care district, the largest in the state, has been seeking a partner since 2024, accepting a $25 million loan from Sharp as the two attempted to build a collaborative business agreement. However, that arrangement blew up when Sharp demanded its money back after learning that Palomar had taken a $20 million loan from UC San Diego.
While some speculated at that time that the loan was a sign that Palomar was moving on and looking to partner with the university, both parties said that the loan was about one public health agency helping another in a time of need.
Public agendas this week showed significant signs of intended collaboration.
Palomar’s governing board was set to approve a $10 million loan agreement with the University of California Board of Regents Monday but tabled the item without explanation or discussion. The Board of Regents, meeting this week at UC Los Angeles, considered two items in closed committee meetings that appear to be connected.
On Tuesday, the regents’ Health Services Committee discussed a “letter of intent for participation in (a) joint powers authority” connected with its San Diego Campus. On Wednesday, members of the Finance and Capital Strategies Committee discussed a “loan expansion to Palomar Health in connection with (a) letter of intent,” again connected to UC San Diego.
Both agencies would eventually be required to disclose any closed session votes, though no such disclosures were reported Thursday.