Palomar Health and UC San Diego Health have completed an agreement to form a Joint Powers Authority (JPA) to serve patients in North San Diego County. Calling it a novel model for healthcare delivery, the partners say Palomar UC San Diego Health combines the strengths of a community-based health system and an academic health system under a single unified governance structure.

The 1,011-bed UC San Diego Health includes three hospitals — Hillcrest Medical Center, Jacobs Medical Center and East Campus Medical Center — as well as Sulpizio Cardiovascular Center, Moores Cancer Center, Shiley Eye Institute, Koman Family Outpatient Pavilion, McGrath Outpatient Pavilion, and Altman Clinical and Translational Research Institute. The health system also includes primary care and same-day services at clinics throughout Southern California.

Palomar Health is California's largest public healthcare district by area, serving an 800-square-mile region in northern San Diego County. The health system operates three main facilities: a 286-bed hospital in Escondido, a 95-bed hospital in Poway, and a 129-bed skilled nursing facility.

A JPA is a legal entity that allows two public health agencies to jointly run hospitals and clinics, with shared decision-making. In this case, this JPA formed with the former Palomar Health and the existing UC San Diego Health.

A San Diego Union-Tribune story details some of the financial challenges Palomar has faced. “Palomar’s facilities in Escondido and Poway, and its affiliated medical groups, will continue to operate independently of UC San Diego Health but will now be run by a new board of directors in a legal structure called a joint powers authority,” the story said. “Both parties are transferring significant assets, with Palomar contributing its Poway campus and 15% of its assets on Citracado Parkway in Escondido. UC San Diego has already loaned Palomar $40 million to help it cope with ongoing financial difficulties, and documents show it will contribute an additional $160 million to the JPA for a wide range of improvements.”

USCD CEO Patty Maysent, Palomar CEO Diane Hansen, and the JPA  board will oversee Palomar UC San Diego Health's long-term strategy from the launch of new clinical services and building expansions to investments in new equipment and projects.

"Early priorities include developing two shelled floors at the Escondido hospital to support the expansion of destination healthcare services," said Maysent, in a statement. "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."

Representatives from Moores Cancer Center at UC San Diego Health will collaborate with cancer care teams at the Escondido campus to develop the new services.

"The new joint powers authority with UC San Diego Health marks a defining moment for healthcare in North San Diego County," said Hansen in a statement. "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.”