Palomar Pomerado Health System in San Diego has received a last-minute affiliation bid from Sharp HealthCare, even as it was holding public hearings on a proposed deal with ScrippsHealth.
San Diego-based Sharp's proposal includes an upfront payment of $20 million from Palomar Pomerado to be put into a new company that would manage the system's two hospitals in Poway and Escondido, north of San Diego. ScrippsHealth, also based in San Diego, would have Palomar Pomerado make payments of about $110 million over 30 years in lieu of operating the facilities. In either case, the 800-square-mile Palomar Pomerado public healthcare district would remain intact and continue to receive about $5 million in annual tax revenues.
Sharp officials said its offer was made as the two-year negotiation process between Palomar Pomerado and ScrippsHealth appeared to drag once again. An April 1 date set by the parties to complete the affiliation had passed without an announcement.
Sharp spokesman Dan Stanziano said his company's proposal would save Palomar Pomerado about $40 million over 30 years.
ScrippsHealth's board approved its company's affiliation last month, and Palomar Pomerado's board is to meet this week to vote on the affiliation. It has forwarded Sharp's proposal to its consultant and financial adviser for review.