The Hi-Desert Medical Center Board of Directors held a special meeting last night in which they chose which of the two organizations the hospital would affiliate with: Tenet, a $16 billion corporation that owns 80 other hospitals, including Desert Regional in Palm Springs, and JFK in Rancho Mirage; or Strategic Global Management, a privately owned $200 million company that owns seven hospitals, the closest of which are in Victor Valley, Hemet, and Menifee. Both organizations modified their original proposals, so that they were financially equivalent. Managing editor Tami Roleff says the board used other criteria to determine which organization was the best fit…
With the financial terms of the affiliation proposals essentially equal, the question of which organization to choose came down to the goals, objectives, and philosophies of Tenet and SGM. Tenet: “We are developing accountable care organizations and other models of clinical integration to effectively manage the health of the population in communities we serve. We see HDMC as a valuable partner n building a clinically integrated network in the Coachella Valley and Morongo Basin region.”
SGM: “Stategic’s goal is to assist community hospitals to stay open by providing efficiencies and strength for stand-alone facilities. We see HDMC as a community hospital that needs additional resources to provide the excellent community care needed to service the surrounding community and keep the health care local.”
Director Joseph Sullivan explained why he was voting for Tenet: “Tenet would be the best fit in the immediate term. Tenet’s nearest hospital is Desert Regional in Palm Springs. Our hospital has had a long working relationship with Desert Regional, and it’s worth preserving. Conversely, affiliation with SGM would potentially damage that existing cooperative relationship between HDMC and Desert Regional. Many of our doctors have privileges at both hospitals. Many patients from the Morongo Basin are treated there. This existing relationship is worth preserving and developing to our hospital’s advantage.”
Director Dianne Swella agreed. “We do have a relationship with Desert Regional Medical Center, and I think that working with JFK would just further enhance and strengthen the relationship we have.” The hospital’s Chief of Medical Staff, Dr. Sumit Mahajan, likened the affiliation to a wedding, and said he and the doctors supported the board’s decision.
In a unanimous decision, the board voted to affiliate with Tenet. The next step is to draft agreements, which the board can expect to see in about 60 to 90 days. Residents can expect an election to approve the affiliation in April or May.
HI-DESERT MEDICAL CENTER BOARD CHOOSES TENET TO TAKE OVER HOSPITAL OPERATIONS
