ESCONDIDO — Palomar Health has entered into a partnership with Sharp HealthCare, a move that aims to improve access to inpatient, outpatient, and ambulatory care across North County.
Under the new agreement, Palomar and Sharp will collaborate to develop medical programs spanning various clinical service lines. This partnership will expand Sharp’s network, including primary care and medical specialties, further into North County.
The partnership will also provide Palomar patients access to Sharp’s specialized and higher-acuity services, such as transplants and advanced oncology procedures.
Palomar will sublease the top two floors of its Escondido hospital to Sharp as part of the agreement. Palomar Health Board Chair Jeff Griffith described this as creating a “hospital within a hospital.”
“We’ve never been able to financially build out the top two floors,” Griffith said. During the COVID-19 pandemic, the federal and state governments utilized the space as a treatment center. “That’s the only time those top two floors got any attention, but this will be like a hospital within a hospital,” he added.
Both healthcare organizations emphasized that the partnership does not involve acquiring assets. Sharp is San Diego’s largest healthcare system, while Palomar is California’s largest public health district. The partnership will allow Palomar to maintain its public designation through a Letter of Intent.
“We are honored to be partnering with such an esteemed organization,” said Diane Hansen, President and CEO of Palomar Health, in a statement announcing the partnership in late August. “By working together and reimagining healthcare to make it even more accessible, we will be able to address gaps in healthcare services, providing more comprehensive care options and ensuring that our patients receive the highest standard of care close to home.”
Hansen noted that the district expects to finalize the program within a year.
Sharp HealthCare also expressed enthusiasm for the partnership. Chris Howard, President and CEO of Sharp, underscored the importance of district hospitals like Palomar Health to their communities.
“District hospitals like Palomar Health are vitally important to the communities they serve, and as we have proven through our longstanding partnership with Sharp Grossmont Hospital, we will work together to ensure this partnership is positioned to meet the health care needs of North County,” Howard said.
Griffith noted that the collaboration became feasible after Palomar Health entered into a management agreement with Mesa Rock Healthcare Management earlier this year. While some criticized this move as a step toward privatization, Griffith dismissed those concerns.
“We didn’t privatize, we created a nonprofit, legal entity where we moved our administration over to negotiate with private healthcare organizations like Sharp,” Griffith explained. “We never could have created this partnership with Sharp without that management services organization.”
Public healthcare districts, including Palomar Health, have faced financial difficulties in recent years. At the same time, larger private nonprofit entities like Kaiser Permanente and Sharp HealthCare have shown greater resilience in overcoming these challenges. The new partnership is seen as a strategic step to bolster Palomar’s capacity to serve its community.
