The Hi-Desert Medical Center has been bleeding red ink for years, but the situation has become increasingly dire the past few years, as the hospital is running out of money. CEO Bob Tyk said the hospital lost about $4.6 million dollars last year, of which $2 to $2.5 million was cash. Each month, the health care district loses between $400,000 and $500,000. The hospital’s board of directors realized the only way to stop the hemorrhaging was to merge its operations with another healthcare organization, and so about a year and a half ago, they started the very long search for a compatible partner. Managing editor Tami Roleff says the process is nearly over…
As a public government facility, the Hi-Desert Health Care District can’t be sold. However, if the majority of voters in the district approve, it can be leased to another health care entity for a set term, usually 30 years. Leasing the operations means that Hi-Desert Medical Center would be merged or affiliated with a larger hospital organization, making it easier to: recruit physicians, especially specialists, and thereby increasing services it can offer; improve its bargaining power with insurance companies; and most importantly, gain access to capital. CEO Bob Tyk says it’s a win-win situation for both the hospital and the area’s residents. The health care district has received proposals from four parties that are interested in affiliating with the hospital. The board of directors expects to decide by mid-November on which proposal to accept. Due to non-disclosure agreements, the health care district can’t say which organizations it’s considering for the merger until its decision has been made. Then, probably in March or April, voters in the health care district will receive a ballot by mail to approve the merger. If approved, the hospital will become affiliated with the other health care entity about a month later.
