Diane Hansen has received a four-year contract extension as president and CEO of Escondido, Calif.-based Palomar Health, following a voluntary salary reduction, according to a news release shared with Becker’s.
“To further support Palomar Health’s continued progress and long-term stability, Hansen voluntarily proposed a reduction in her total compensation of roughly $2 million over the term of the extension,” a spokesperson for the health system said. “This proposal was initiated solely by Hansen and reflects her commitment to responsible financial stewardship and alignment with Palomar Health’s operational priorities as the healthcare landscape continues to evolve.”
Palomar Health’s board’s decision to extend the contract was underway prior to any discussion of compensation adjustments, according to the health system. The board approved the extension, effective Jan. 1, 2026, through Dec. 31, 2029, which supersedes her prior contract set to expire Dec. 31, 2027.
Ms. Hansen assumed the CEO role on an interim basis in November 2017 and was appointed permanently in 2018. She previously served as executive vice president of finance and CFO for Palomar Health.
Under her leadership, the organization has expanded initiatives to meet the growing demand for mental healthcare services, while also expanding advanced treatment options and proactive health education programs, according to the health system. Palomar Health has also advanced plans to finalize a joint-powers authority with UC San Diego Health.
“I’m grateful to the board of directors for its confidence and support, and I’m proud to continue leading Palomar Health during this important period of transformation,” Ms. Hansen said in a statement shared with Becker’s. “This extension allows us to maintain continuity in leadership while remaining disciplined and responsible as we work toward a stronger, more sustainable future for California’s largest healthcare district.”
Palomar Health operates two main hospitals, Palomar Medical Center Escondido and Palomar Medical Center Poway, as well as a number of outpatient clinics, specialty centers and a skilled nursing facility.
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