Desert Regional’s future: Tenet proposal would continue public-private partnership

Since 1997, Tenet Health and the Desert Healthcare District have enjoyed a strong public-private partnership through the lease of Desert Regional Medical Center. Over that time, Tenet has invested significant resources into our Desert Care Network to ensure that the entire Coachella Valley has access to outstanding healthcare.

The initial and current lease included an up-front payment of $163 million, which included pre-payment of the 30-year hospital lease, inventory, cash and forgiveness of all District debt. This provided the District the ability to shift its focus toward community health and support of local nonprofit organizations.

On top of our lease payment, Tenet has invested an additional nearly $500 million into the Desert Care Network, which was not required under our lease, but important to Tenet to ensure the needs of our community are met. Our investment provides our region with many life-saving benefits, including not only the valley's first and only Level I designated trauma center, but also the first and only comprehensive stroke center, the first community comprehensive cancer center and the first intensive care unit for newborns – all at no cost to taxpayers because Tenet is an investorowned company.

The current lease with Desert Regional expires in 2027. We agree with Chris Christensen, Interim CEO, in his op-ed that we need to reach an agreement quickly, especially considering the advanced services we offer.

Free from the burden of operating Desert Regional, which was in financial distress prior to the lease, the District has been able to provide nearly $100 million in grants to local nonprofits that provide vital healthcare-related and social support services. The new proposed lease would provide an additional $300 million to the District and in their words, “definitively expand that effort” to support community healthcare.

The proposal in front of the District raises Tenet's total financial commitment to the Coachella Valley to over $1.6 billion – an unprecedented investment in the health of the community. Our continued public-private partnership will provide outstanding, equitable, accessible, and inclusive care to the entire Coachella Valley for years to come.

Mike Ditoro is chief administrative officer of Desert Regional Medical Center. He can be reached at Michael.Ditoro@tenethealth.com.