Oceanside, Calif.-based Tri-City Medical Center’s board unanimously voted to partner with San Diego-based Sharp HealthCare on a long-term lease, The San Diego Union reported May 29.
Five things to know:
1. Under the agreement, Sharp will assume all of Tri-City’s assets and debts and turn the facility into an acute care and clinical service hub for North County, according to the report.
2. Sharp will invest about $100 million into Tri-City to help stabilize its financial situation, which has declined since the COVID-19 pandemic, according to the report. The deal also includes bringing the medical center into seismic safety compliance for 175 beds and decommissioning a noncompliant portion of the building. The building is licensed for about 400 beds.
3. Because Sharp is a private, nonprofit system, the deal will require a public vote, according to the report.
4. Tri-City previously had an agreement with UC San Diego Health, but the tentative deal fell through after nine months of negotiations and Tri-City asked to reconsider all offers, according to the report. Both UC San Diego Health and Sharp initially submitted their proposals in October 2023 and were the top two candidates among 25 providers reviewed by a Tri-City Consultant.
5. UC San Diego Health CEO Patty Maysent said there were “no hard feelings” after the board’s May 29 vote and her system will continue to work with Tri-City, according to the report.
