Palomar Health, UC San Diego Health finalize joint powers authority
News Highlights
Palomar Health and UC San Diego Health have completed a joint powers authority, creating Palomar UC San Diego Health. The new system will oversee hospitals in Escondido and Poway.
UC San Diego Health and Escondido, Calif.-based Palomar Health completed a joint powers authority on July 1, forming a new health system called Palomar UC San Diego Health, according to a July 2 news release.
The arrangement combines Palomar Health’s community-based hospitals with the academic and specialty resources of UC San Diego Health, which the release described as the region’s only academic health system. The new entity oversees the Escondido and Poway hospitals. At the same time, Palomar UC San Diego Health and UC San Diego Health remain separate systems with independent licenses and medical staffs.
The release said a joint powers authority is a legal structure that allows two public health agencies to jointly operate hospitals and clinics, share decision-making and improve care for the community.
UC San Diego Health CEO Patty Maysent said in the release that the new system “creates a new blueprint for healthcare in California.” She said the system, focused on North San Diego County, will grow and enhance healthcare services while expanding access to advanced specialty care close to home.
Diane Hansen, who previously served as CEO of Palomar Health, will lead the joint powers authority as CEO. Ms. Hansen, Ms. Maysent and the JPA board will oversee Palomar UC San Diego Health’s long-term strategy, including the launch of new clinical services, building expansions and investments in equipment and projects.
Early priorities include developing two shelled floors at the Escondido hospital to expand cancer, cardiovascular and other complex specialty services, according to Ms. Maysent. Moores Cancer Center at UC San Diego Health, an NCI-designated comprehensive cancer center, will work with cancer teams in Escondido to build out those services. More details are expected in summer 2026, according to the release.
The move follows earlier financial and strategic discussions between the organizations. In March 2025, Palomar Health borrowed $20 million from UC San Diego Health to continue providing patient care. Later that July, the sides entered exclusive talks to create the joint powers authority.