The Hi-Desert Medical Center Board of Directors heard presentations at its meeting last night from the two for-profit health care groups that are interested in affiliating with the hospital. Tenet Healthcare Group has 12 California hospitals, including Desert Regional Medical Center and JFK in the Coachella Valley. Strategic Global Management is a privately owned company that owns hospitals in Hemet, Victor Valley and Menifee, among others. Managing editor Tami Roleff was at the board meeting last night, and spells out some of the terms of the two proposals…
Tenet’s proposed lease terms for Hi-Desert Medical Center are $2 million a year, versus $1 million a year for SGM. However, Tenet can terminate the 30-year lease early under certain conditions by giving two-years’ notice, while SGM has no early termination clause. Tenet’s proposal includes $17 million for capital improvements, $10 million for IT, and $3 million to $5 million for physician recruitment, compared to SGM’s $12 million capital improvements, no IT funds, and $7 million for physician recruitment. The consultant who’s been leading the search for the last six months, Jon Spees, recommended the board accept Tenet’s proposal due to the significant difference in capital improvements, and, in general, the higher rate of patient satisfaction at its hospitals. The board will likely meet within the next two weeks to make its decision, at which time the contract negotiations will begin. Residents can expect to vote on whether to approve the affiliation in April or May.
HI-DESERT MEDICAL CENTER CLOSE TO CHOOSING AFFILIATION PARTNER
