Escondido, Calif.-based Palomar Health, a publicly owned health system, is in dire financial straits due to $585 million in debt, Voice of San Diego reported June 26.
Currently, Palomar's finances are boosted through a partnership with Oakland, Calif.-based Kaiser Permanente that allows Kaiser members to access Palomar Medical Center. Kaiser is getting ready to open its own hospital in nearby San Marcos.
The partnership will end Dec. 31, 2024.
Credit rating agency Moody's recently downgraded Palomar to "negative" due to risks associated with meeting its financial obligations.