UC San Diego Health and Escondido, Calif.-based Palomar Health have entered into exclusive talks to create a joint powers authority, with the goal of coordinating and enhancing care access across North San Diego County.
A letter of intent for the joint powers authority discussions was approved by both the University of California Regents and the Palomar Health District Board in July, according to a July 28 news release shared with Becker’s.
“The LOI establishes a formal period of exclusivity during which the two organizations will work together to develop the long-term strategic partnership,” the release said. “The shared goal is to establish a JPA—a jointly governed entity between public institutions that would oversee the operations of Palomar Health and enable shared investment in services and infrastructure.”
The news comes after Palomar Health borrowed $20 million from UC San Diego Health in mid-March to continue providing care to patients. In October 2024, Palomar’s rating was downgraded by Moody’s from “Baa3” to “B2,” reflecting “very thin” cash balances and ongoing cash flow losses. The system also faced a cybersecurity incident in May 2024 but fully restored operations in August 2024.
“The LOI is an important step in a longer process ultimately aimed at enhancing healthcare services, optimizing regional capacity, and meeting the needs of patients across a broader geography,” Diane Hansen, CEO of Palomar Health, said in the July 28 release.
The health systems will work to finalize the proposed JPA details by late 2025 and plan to share more updates as the planning progresses.
