UC San Diego Health may partner with a struggling hospital to appoint a new leadership team and oversee day-to-day management, The San Diego Union-Tribune reported Feb. 24.
El Centro (Calif.) Regional Medical Center is "bleeding cash," according to the report, and the hospital is considering signing a letter of intent with UCSD Health that would hand over operations March 1. The organizations have a longstanding relationship and UCSD already provides the hospital's CEO.
Earlier this year, UCSD Health agreed to provide the hospital with limited consulting services, but the new agreement would give UCSD management and operations oversight and the ability to appoint additional management positions.
UCSD Health would also manage the financial health of El Centro under the new agreement and report on the cash flow, debts, income and more to the board. "With respect to support for things like revenue cycle, procurement, payer contracts, the University of California has a certain amount of weight in those areas and I think we can bring some benefit there," Patricia Maysent, CEO of UC San Diego Health, told the Union-Tribune.
Preston Hollow Community Capital may also provide short-term funding to El Centro under the agreement.
The partnership would last three months if signed.