New San Diego health agency to bolster medical services in North County

SAN DIEGO — Palomar UCSD Health has appointed its first six-member board of directors, formalizing a joint powers agreement intended to stabilize the financial future of California’s largest public health district.

Approved in 2025, the partnership allows the two public organizations to co-manage medical services. The newly formed board confirmed Diane Hansen, the current CEO of Palomar Health, will serve as CEO of the joint venture.

The board also named Edward Prunchunas as chairman and UCSD’s Margarita Baggett as vice chair. The entity will oversee hospital operations in Escondido and Poway.

The collaboration addresses pressing needs for both healthcare providers. While Palomar Health seeks to improve its financial standing by increasing patient volume, UC San Diego Health requires additional bed capacity to relieve its overcrowded medical centers.

Under the agreement, UCSD has committed to helping Palomar expand specialized care in fields such as oncology and cardiology.

The formation of Palomar UCSD Health represents a significant strategic pivot in U.S. public health management, moving beyond mere administrative cooperation to establish a new blueprint for regional care. The alliance pairs Palomar Health, a district public system grappling with fiscal headwinds, with UC San Diego (UCSD) Health, a premier academic medical center currently constrained by capacity limits.

Eschewing the regulatory complexities and capital intensity of a traditional merger, the entities have utilized a Joint Powers Agreement (JPA). This legal framework provides the structural agility necessary to share resources, co-invest in infrastructure, and manage common assets while maintaining separate institutional identities.

For residents of San Diego’s North County, the pact promises a tangible upgrade in service delivery. By decentralizing UCSD’s high-acuity specialties—specifically oncology and cardiology—the partnership allows patients to access tertiary care locally, mitigating the need for travel to flagship facilities in La Jolla or Hillcrest. From a policy perspective, this collaboration serves as a critical intervention for Palomar Health, potentially arresting its financial decline and stabilizing the regional healthcare safety net.

However, the alliance faces significant execution risks. Success will require the seamless integration of two distinct institutional cultures: a community-centric hospital system and a research-intensive academic powerhouse. The long-term viability of the venture will ultimately hinge on the new governing board's ability to harmonize these disparate operational mandates into a cohesive delivery model.

San Diego County is home to a vibrant Vietnamese-American community, particularly across North County in cities like Escondido, Poway, and San Marcos. For families in these neighborhoods, the partnership between UCSD and Palomar Health is a major win. By bringing advanced specialty services and facility upgrades directly to local Palomar hospitals, the initiative ensures that residents—especially our seniors—can access world-class healthcare without the stress of a long commute. This shift not only saves families time and travel costs but also provides much-needed peace of mind, making specialized medical care more accessible and manageable for the entire community.