Palomar Health and UC San Diego Health have completed an agreement creating a joint powers authority to operate a new regional system, Palomar UC San Diego Health, officials announced Thursday, July 2.
The authority took effect July 1 and will oversee Palomar’s Escondido and Poway hospitals along with other facilities and resources, according to a news release announcing the deal.
A joint powers authority allows public agencies to jointly operate hospitals and clinics while sharing governance and decision-making. Palomar UC San Diego Health and UC San Diego Health will remain separate health systems with separate licenses and independent medical staffs, the news release explained.
The pact is the second major North County hospital partnership to advance this year. Voters in the Tri-City Healthcare District approved Measure H in the June 2 election, with 92.33% voting yes and 7.67% voting no in the final results, clearing the way for a long-term partnership between Tri-City Medical Center and Sharp HealthCare. The Palomar UC San Diego Health agreement was not part of June’s election.
In 2024, Tri-City Medical Center and UC San Diego Health were unable to negotiate their own attempt at a partnership, which had been in the works for several months at the time.
Like Tri-City, Palomar is a public health care district managed by an elected board. As of July 6, however, its Board of Directors webpage was not yet accessible under the merged website. Palomar’s service area covers about 800 square miles, making it the state’s largest health care district by geographic area, according to district information.
The district traces its roots to the Northern San Diego County Hospital District, established in 1948 after local residents sought a larger hospital for the growing Escondido area. Palomar Memorial Hospital opened in downtown Escondido in 1950, and the system later expanded to Poway and west Escondido.
“This new system, focused on North San Diego County, will grow and enhance health care services while offering increased access to advanced specialty care, close to home,” UC San Diego Health CEO Patty Maysent said in the joint news release.
Diane Hansen, chief executive officer of the joint powers authority, said the arrangement would preserve local care while expanding access to medical expertise, innovation and new services.
“The new joint powers authority with UC San Diego Health marks a defining moment for health care in North San Diego County,” Hansen said in the news release. “This new health system allows us to preserve and bolster local care while expanding access to expertise, innovation and new services that will benefit our communities for decades to come.”
Officials said early priorities include developing two shelled floors at the Escondido hospital for expanded specialty services, including advanced cancer, cardiovascular and other complex care. Teams from UC San Diego Health’s Moores Cancer Center are expected to work with Escondido cancer-care providers on new services, with additional details anticipated this summer.
Existing Palomar Health patients will continue receiving care from their current doctors and care teams, officials said.
