Local residents will have another chance to hear the latest on Tenet's lease proposal for Desert Regional Medical Center at two upcoming community meetings hosted by the Desert Healthcare District this month.
In May, the Desert Healthcare District board voted unanimously to have district staff members work out contract details with Tenet Health regarding a new 30-year lease for Desert Regional in Palm Springs. The decision came months following tense negotiations between the district and Tenet over the matter, especially as the potential sale of the hospital to Tenet is tied to the new lease.
The May vote did not finalize a transaction of the Palm Springs hospital to Tenet. Coachella Valley voters will ultimately decide whether the lease is approved, likely as soon as the November 2024 election.
What to expect at these Desert Healthcare District meetings
The Desert Healthcare District and Foundation board are expected to provide updates about the lease agreement at the two upcoming meetings.
During the May board meeting, directors said they wanted to move forward with exploring a contractual agreement with the Dallas-based corporation, with the caveat that the district's staff members, attorney and consultant work with Tenet to incorporate revised lease proposal terms and clarify details. Director Carole Rogers noted at that meeting that the lease agreement needed clarity on maintenance of key elements and essential services, a non-compete clause, compliance with existing laws, including safe staffing ratios, and seismic retrofit upgrades.
The district said in an email Monday that, since the May meeting, the two entities have been working together to shape the final lease agreement. It will also include a number of revisions that Tenet presented, which include making an initial payment to the district of $100 million on the first day of the new lease; making annual payments that increase each year for 19 years; making a final payment of $100 million to the district on May 31, 2057, at which time total ownership of Desert Regional would be transferred to Tenet; pursuing an expansion of the emergency department and admitting area at JFK Memorial Hospital in Indio (currently estimated to be $60 million); and more.
When are the Desert Healthcare District community meetings?
The two community meetings are scheduled for:
- 6 p.m. July 11 at Fantasy Springs Casino Resort, 84-245 Indio Springs Parkway, Indio
- 6 p.m. July 16 at the University of California, Riverside-Palm Desert campus (Building B auditorium), 75-080 Frank Sinatra Drive, Palm Desert
The district is eyeing its July 23 board meeting to finalize negotiations with Tenet and vote to put the item on the November 2024 ballot for voters. The deadline to put an item on the ballot is Aug. 9.
If it is placed on the ballot, Coachella Valley voters will consider the agreement on Nov. 5.
If approved by voters, Tenet and the district would enter into a new lease agreement on Dec. 1. The new lease would commence on May 31, 2027, and end May 21, 2057. The current lease between Tenet and the district expires May 30, 2027.
Ema Sasic covers entertainment and health in the Coachella Valley. Reach her at ema.sasic@desertsun.com or on Twitter @ema_sasic.
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