Diane Hansen, CEO of struggling Escondido, Calif.-based Palomar Health, still expects the hospital to turn a profit, even as Oakland, Calif.-based Kaiser Permanente looks to open a nearby hospital in August, The San Diego Union-Tribune reported July 31.
The opening of Kaiser's San Marcos (Calif.) Medical Center means that Kaiser patients will no longer seek care at Palomar. However, Ms. Hansen said that the end of the partnership would not have a devastating effect on Palomar.
She estimated that Palomar cares for between 20 to 25 Kaiser patients out of 350 total patients the health system cares for daily. Ms. Hansen also said that the opening of San Marcos Medical Center doesn't mean the end of transfer agreements between the two health systems.
Palomar has $585 million in debt. Credit ratings agency Moody's downgraded Palomar's outlook to negative due to risks associated with the debt.
Despite the debt, Ms. Hansen is standing by projections that have the health system turn a $55 million operating profit in the 2023 and 2024 budget year.