ESCONDIDO — Palomar Health and UC San Diego Health have finalized an agreement to form a joint powers authority, creating a new health system called Palomar UC San Diego Health.
The new health system will serve nearly 1 million people across the health care district’s 800 square miles, making it the state’s largest by geographic area.
According to the health care district, the partnership combines the strengths of Palomar Health’s community-based health care system with UC San Diego Health’s academic medical system.
“The new joint powers authority with UC San Diego Health marks a defining moment for health care in North San Diego County,” said Diane Hansen, chief executive officer of the JPA and formerly of Palomar Health, in a recent announcement. “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.”
The Palomar Health Board of Directors first approved the JPA’s creation last October.
At the time, leaders emphasized that the JPA was not a merger or takeover by UC San Diego Health. Instead, it allows the two public health agencies to jointly operate hospitals and clinics while sharing governance to improve community care.
Under the agreement, Palomar Health will contribute 50% of the district’s assets to the JPA and establish a $50 million line of credit.
The JPA’s governing board will consist of six members — three appointed by Palomar Health and three by UC San Diego Health. The board will oversee operations at the Escondido and Poway campuses, as well as other district resources.
Palomar UC San Diego Health Authority and UC San Diego Health will remain separate health systems, each with its own licenses and independent medical staff.
As part of the JPA, new health services are expected to come online soon. Existing patients will continue receiving care from the same physicians and care teams, and information about new services will be posted on the Palomar UC San Diego Health website.
Among the new system’s first priorities is developing the two unfinished floors at the top of the Escondido campus, which have remained largely unused since the new hospital opened in 2012. The exception came during the COVID-19 pandemic, when the floors were converted into a Federal Medical Station with more than 200 beds to help relieve hospital overcrowding.
“This investment will significantly expand the depth and breadth of specialized care available in North San Diego County, including advanced cancer, cardiovascular and other complex clinical services,” said Patty Maysent, chief executive officer of UC San Diego Health, in a recent announcement.
As part of the new health system, Palomar’s cancer teams will collaborate with specialists from Moores Cancer Center at UC San Diego Health — the region’s only National Cancer Institute-designated comprehensive cancer center — to develop new services. Patients can expect additional details later this summer.
The JPA officially took effect July 1, the same day Sharp HealthCare officially assumed operations of Tri-City Medical Center in Oceanside.
In June, 92% of voters in the Tri-City Healthcare District approved Measure H, allowing the hospital to join the Sharp HealthCare system and rename its Oceanside campus Sharp Tri-City Medical Center.
Under the partnership, Sharp will enter into a long-term lease for the hospital, assume all of Tri-City’s assets and liabilities, invest at least $100 million in facility upgrades and strategic improvements, and implement the Epic electronic health record system.
Sharp also committed to maintaining 175 hospital beds in compliance with seismic safety standards.
Tri-City had previously explored a partnership with UC San Diego Health before negotiations ended in 2024 after the two sides reached an impasse over the terms of an agreement. The district later reopened its search, again receiving proposals from UC San Diego Health and Sharp, ultimately selecting Sharp.
