OCEANSIDE — The Tri-City Healthcare District board has voted unanimously to partner with Sharp HealthCare, the county’s largest healthcare system, to assume operations and financial responsibility of Tri-City Medical Center and transform the hospital into a key hub for acute care in North County.
The board’s May 29 decision follows years of efforts to improve the hospital’s financial stability and patient services. The move also represents a complete reversal from the board’s October 2023 decision, which named UC San Diego Health as its preferred partner over Sharp.
After talks with UCSD Health fell through in July 2024 due to an impasse in the terms of the agreement, Tri-City reopened its search and reached out to 25 potential partners before receiving new proposals from both Sharp and UCSD.
Key components of Sharp’s proposal include a long-term lease of the hospital, assumption of all Tri-City’s assets and liabilities, a capital commitment of at least $100 million to cover facility upgrades and strategic investments, and plans to implement Epic’s Electronic Health Record (EHR) system.
Sharp also committed to maintaining 175 hospital beds in compliance with seismic safety standards.
According to Sharp, Tri-City Medical Center will be a “focal point” in its “development of a robust North County network, serving as an acute care hub from which care is provided to the community.”
Sharp leaders stated that the organization is well-suited for the partnership due to its successful track record with community hospitals, citing Sharp Grossmont Hospital as an example — a facility that saw significant improvements after partnering with Sharp in 1991 and is now the largest healthcare provider in East County.
“(Grossmont) has experienced a boom since it became a partner with Sharp,” said Sharp CEO Chris Howard, noting the hospital’s net revenue ballooned from $140 million in 1991 to over $1 billion in 2024.
Sharp Grossmont also expanded by roughly 100 beds and is now home to a modern 50-bed neurological center, Howard added.
Tri-City officials expect to finalize a Letter of Intent with Sharp by mid-June. Since Sharp is a private healthcare provider, the partnership will require voter approval from residents of the Tri-City Healthcare District, which includes Oceanside, Vista, Carlsbad and parts of San Marcos.
“We know how deeply this hospital is rooted in the heart of North County,” said Tri-City CEO Dr. Gene Ma. “This decision reflects thoughtful deliberation and a deep respect for the trust placed in us by our neighbors, families and staff.”
The decision received broad support from the public and the district’s ad-hoc committee.
“We have to go with a partner we can trust,” said Vista resident and former board member Marvin Mizell. “I would go with Sharp because we know that they will follow through with what they say.”
The agreement appears to mark the end of Tri-City’s ongoing search for a strategic partnership. Past negotiations between Tri-City and UCSD Health fell apart when, according to hospital leaders, UCSD changed key terms of its original proposal.
Ma previously told The Coast News that under UCSD’s revised terms, the university would have managed the hospital without assuming financial responsibility for five years — a structure deemed too costly for the district.
UCSD’s latest proposal included two stages. In the first phase, Tri-City and UCSD would jointly operate a new comprehensive cancer center on the Tri-City campus, with UCSD committing $80 million to $100 million for cancer-related work and medical service projects.
The second phase involved the potential transfer of all Tri-City assets and liabilities to UCSD Health, with the academic healthcare system assuming management of the hospital while the Tri-City board retained governance, along with the option to relinquish control fully at a later date.
The proposal also committed to running a minimum of 140 beds with necessary seismic retrofitting.
UCSD Health CEO Patty Maysent praised both proposals on the table for Tri-City.
“However this turns out, we’re thrilled you’re going through this process,” Maysent said. “No matter what you choose, it’s going to be good.”
