Desert Healthcare District unveils next steps as valley voters approve new hospital lease-purchase agreement

Tenet Healthcare will continue to operate Desert Regional Medical Center and will ultimately own the hospital, Coachella Valley voters decided on November 5.

Voting results show that 71 percent of ballots approved the Lease-Purchase Agreement (LPA), according to The Desert Sun.

The LPA, which was first presented to the Desert Healthcare District and Foundation Board by Tenet leadership in September 2023, will pay the public agency about $650 million during the 30-year lease term. It also requires Tenet to complete seismic upgrades at the hospital campus by the state-mandated 2030 deadline.

See the timeline and plan for how the LPA will be implemented: English, Español.

Tenet entered into its first 30-year lease agreement with the District and Foundation in 1997, as the agency shifted its focus from hospital management to community-focused grantmaking and program support. That lease provided the District and Foundation with limited oversight of the hospital property, which is expected to continue until hospital ownership is transferred to Tenet. The initial (and current) lease ends on May 30, 2027, and the new LPA begins the next day.

"Negotiating the Lease-Purchase Agreement with Tenet has been one of the most important and challenging responsibilities of Board service," said Evett PerezGil, Desert Healthcare District and Foundation Board president. "The best interests of Coachella Valley residents were top of mind throughout the process, and ultimately led the Board to bring Measure AA before valley voters."

This week's vote follows 11 months of negotiations between the District and Foundation Board with Tenet, as well as multiple public meetings for the District staff to present the LPA and receive feedback from valley residents. Other opportunities to inform the community were provided through print and broadcast media interviews, and digital and social media marketing.

“After a year of hosting community meetings and engaging with the public about the future of Desert Regional Medical Center, Coachella Valley residents have spoken," said Chris Christensen, CEO of the Desert Healthcare District and Foundation. "As a public agency with elected leaders, our board and staff respect the voters’ decision to enter into a lease-purchase agreement with Tenet Healthcare. Their yes vote on Measure AA means that hospital care will continue uninterrupted.

“It’s also an exciting time for the healthcare district as we reimagine our role and build upon our legacy of increasing access to healthcare for all valley residents.”

More about the Desert Healthcare District & Foundation

The Desert Healthcare District is a local government agency formed in 1948. Its mission is to achieve optimal health at all stages of life for all District residents. The District includes more than 400,000 residents and encompasses the entire Coachella Valley. The District and Desert Healthcare Foundation, together, are one of the largest funders in the valley. These funds are used to assist residents — especially the underserved — in accessing vitally needed resources, such as primary and behavioral healthcare. Learn more.