Palomar Health continues to back physician group, despite $82M loss

Escondido, Calif.-based Palomar Health plans to continue supporting medical group Arch Health Partners, despite growing losses, according to The San Diego Union-Tribune

Arch Health Partners has operated in the red since 2010, when Palomar Health helped form the medical group. In the seven years since its creation, AHP's combined losses have totaled $82 million.

Even with the mounting losses, Palomar Health isn't ready to walk away from AHP.

"The reality today is that it's nearly impossible for a system to operate without an aligned physician group," Della Shaw, Palomar's executive vice president of strategy, told The San Diego Union-Tribune.

Although officials aren't sure when, or if, AHP will operate in the black, Palomar Health's finances are improving. The system is expected to record an operating income of $20 million this year, CFO Diane Hansen said, according to the report.   

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