The board for Desert Healthcare District and Foundation is working to "clarify and refine some language" around a noncompete clause in its hospital lease purchase agreement with Dallas-based Tenet Healthcare, according to a June 21 release shared with Becker's.
The district's board voted May 28 to move forward with Tenet's 20-year lease proposal for its Palm Springs, Calif.-based Desert Regional Medical Center.
An initial meeting for the district board was scheduled for July 23 to consider final agreement approval, but ongoing negotiations have pushed out the lease discussion and decision. Once a revised agreement is ready, new dates will be shared for a community meeting and board meeting presentation.
"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 release said.
The district board has until 5 p.m. Aug. 9 to approve and submit a resolution to be included on the Nov. 5 ballot, which will allow voters in Coachella Valley, Calif., to have input regarding the approval of the lease-to-purchase agreement.
Becker's has reached out to Tenet and will update this story should more information become available.