Dallas-based Tenet Healthcare is looking far into the future for Palm Springs, Calif.-based Desert Regional Medical Center, a hospital it has leased and operated since 1996.
The health system leased the hospital through June 2027, but hopes to extend this agreement, according to a report from The Desert Sun. Talks are already underway between representatives of Tenet and the Desert Healthcare District, which owns the hospital, according to the report.
One of the top negotiation points will be hospital upgrades that could cost upwards of $100 million, according to the report. Tenet has already funneled $150 million into the hospital over the past two decades, but a health industry consultant told The Desert Sun that the hospital has been extremely profitable.
Eleven years away from expiration, it is still a bit early to know if the lease will be extended. However, an extension would be in step with the system's strategic plan, according to the report. Tenet Chairman and CEO Trevor Fetter told shareholders in August the system is putting its focus on developing markets where it already has a significant market share, and exiting those where it does not, according to the report. Including Desert Regional, the system is leasing two hospitals and owns another of the four total in the Greater Palm Springs area, according to the report.
Other health systems could join the bidding, but none have yet, Desert Healthcare District CEO Kathy Greco told The Desert Times.
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