Hospital lease revisions prompt Desert Healthcare District to reschedule Board decision

The Desert Healthcare District and Foundation Board is taking time to clarify and refine some language in a hospital lease purchase agreement (LPA) with Tenet Healthcare.

The Board was initially scheduled to consider approving a final agreement at its monthly meeting Tuesday, July 23. However, ongoing negotiations require rescheduling the lease discussion and decision. When a revised LPA is ready, new dates will be announced for presentations at a community meeting and a Board meeting.

The Board has until 5 p.m. August 9 to approve and submit a resolution for inclusion on the November 5 ballot, giving Coachella Valley voters the ultimate say in whether the lease-to-purchase agreement is approved.

The schedule change stems from a noncompete clause in the agreement that stipulates District and Foundation funds not be awarded to acute-care hospitals within the valley -- which are considered competition for Desert Regional Medical Center, the property being leased -- if those funds contribute to the hospitals' revenue.

The clause has raised questions and concerns among community leaders and other residents, prompting the District and Foundation Board at its community meeting on July 16 to instruct its legal counsel, consultant and staff to continue negotiating the noncompete language with Tenet.

Read the most recent noncompete clause.

For meeting updates, please follow the Desert Healthcare District and Foundation at dhcd.org and on Facebook.