Negotiations Reach Critical Phase as Tri-City Board Explores Alternatives

UC San Diego Health and the Tri-City Healthcare District are at a critical juncture in their negotiations aimed at revitalizing the financially troubled Tri-City Medical Center, nearly nine months after their collaboration began, according to the San Diego Union Tribune.

Initially anticipated to conclude by March's end, the talks have extended well beyond expectations, prompting the Tri-City board to take decisive action during a special meeting on Friday. Dr. Gene Ma, CEO of Tri-City Medical Center, disclosed that the board unanimously instructed him and the executive team to explore discussions with external parties interested in the hospital's improved financial state.

Responding to this development, Patricia Maysent, CEO of UC San Diego Health, met with legal advisors and subsequently presented an updated proposal to Tri-City executives on Wednesday. While the full details of the proposal were not disclosed publicly, UCSD confirmed it includes over $100 million in cash infusion to bolster Tri-City's finances and proposes raises averaging 20% over three years for existing hospital employees.

"We believe the revised proposal addresses the board's stated concerns," UC San Diego stated, expressing hope for presenting it to both the Tri-City Medical Center board and UC Regents for approval.

Following Wednesday's meeting, Tracy Younger, chair of the Tri-City board, conveyed optimism: "Our board wants to make it to the finish line, and I'm feeling hopeful, after today. I feel like they really have addressed a lot of the remaining issues that we had."

However, specifics of UCSD's latest proposal remain unclear. The hospital confirmed that elements such as raises and the cash infusion were part of earlier offers. According to Younger, Tri-City's primary concerns revolve around securing detailed legal assurances from UCSD to ensure the hospital's long-term financial stability.

Tri-City's urgency stems partially from the need to secure a partnership swiftly. "I think what made us nervous is just how long it's taking," Younger remarked. The decision to explore other suitors underscores this urgency, aiming to ensure the hospital's viability.

Ma highlighted that UCSD's plan includes opening a women's practice at Tri-City imminently but remains vague on the timeline for reinstating the labor and delivery department, a pivotal issue for Tri-City's future.

While UC San Diego reaffirmed its commitment to expanding healthcare services in North San Diego County irrespective of the negotiation's outcome, Sharp HealthCare, another interested party, declined comment on its current stance.

Tri-City Medical Center faces significant challenges, including substantial debt and vendor payment issues from 2023, despite recent operational improvements. The ongoing negotiations seek to address these financial burdens while charting a sustainable path forward for the Oceanside healthcare institution.