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Public will have ultimate say in proposed lease, possible sale of Palm Springs hospital, nurses are assured

While Desert Healthcare District officials could not comment directly on a proposal by Tenet Healthcare during a Tuesday meeting, the audience was assured no deal could be agreed to without public input and a vote. 

Nurses and their supporters turned out in January to call for better working conditions at Desert Regional Medical Center. Some said Tuesday evening that a possible sale to Tenet Healthcare, which currently leases the facility, should be approached carefully.

Nurses from Desert Regional Medical Center in Palm Springs who voiced concerns about the proposed purchase of the hospital by Tenet Healthcare at a Tuesday evening meeting were assured those concerns were heard and that the public would have the opportunity to make the final decision.

Tenet, a national for-profit company based in Dallas, has leased Desert Regional from Desert Healthcare District, a public entity whose board of directors is elected by voters, since 1997. 

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That lease expires in 2027, and Tenet has proposed a new 30-year lease, which would allow the company to eventually purchase the hospital. Among the terms of the proposed lease is an initial $75 million payment by Tenet next year to support district priorities, with annual lease payments beginning in 2027 resulting in $677 million in total payments.

Crucially, Tenet would be responsible for maintaining the hospital’s compliance with the state’s seismic readiness requirements. To retrofit the hospital and meet those requirements by the 2030 deadline, the hospital needs an estimated $222 million in investments. 

Of the 10 people who spoke during the public comment portion of a Desert Healthcare District Board of Directors meeting Tuesday evening, about half raised concerns about the proposed deal. 

Among them was Rachel Garcia, an ICU nurse at Desert Regional, who noted, “A lot of us have significant concerns about the constant and recurring state of disrepair at Desert Regional,” a reference to several issues that have been brought up over the last few years.

Garcia raised doubts about Tenet’s ability to provide quality care for patients and employees, adding that the company has so far failed to address staffing shortages and problems with infrastructure, specifically plumbing. If the deal were to go through, Garcia said she wants Tenet held accountable for its shortcomings. 

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The healthcare district’s attorney, Jeff Scott, said he appreciated the input from the nurses and made it clear that their concerns about staffing, infrastructure, and patient care have been referred to the hospital administration. 

Other speakers said they hoped the board wouldn’t rush into a new lease and that the community needed to have a say in the final decision.

While members of the Board of Directors could not comment directly on the lease proposal because it was not on the agenda, Scott reminded the room that the board could not legally enter into a transaction like the one being discussed without public input and a public vote. 

He added that the district’s ad hoc committee has a number of concerns with the current proposal, and invited the nurses and others to attend a special meeting on Dec. 6 at 5:30 p.m. to discuss the proposal, including possible alternatives.


Editor’s note: An earlier version of this story attributed comments about the nurses’ concerns and the lease proposal to Desert Healthcare District Board member Dr. Les Zendle instead of the district’s attorney, Jeff Scott.

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Author

Kendall Balchan was born and raised in the Coachella Valley and brings deep local knowledge and context to every story. Before joining The Post, she spent three years as a producer and investigative reporter at NBC Palm Springs. In 2024, she was honored as one of the rising stars of local news by the Coachella Valley Journalism Foundation.

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