Tri-City Healthcare District has agreed to have Sharp Healthcare take over its hospital operations and finances, and the deal could reopen the labor and delivery unit.
As with many public health care districts in the state, Tri-City has been plagued with financial issues since the pandemic. The deal with Sharp includes more than $100 million in investments to stabilize Tri-City’s finances.
“It also includes assumption of the debts and liabilities of Tri-City,” Tri-City's CEO Dr. Gene Ma said, adding that the deal means increased access to care for North County residents.
Tri-City serves Oceanside, Carlsbad, Vista and the surrounding areas.
“(That means) more primary, specialty care, ambulatory services, delivering care where you want that care and growth within our region to build what I believe will one day, in short order, be the flagship medical center in all of North County,” Ma said.
Tri-City has been looking for a partner for the past few years. Sharp and UCSD Health both submitted proposals in 2023, and the board chose UCSD. That deal, however, fell through last year.
"I think because we came to an impasse over the terms that Tri-City felt were different than what was initially proposed," Ma said.
This time around, both Sharp and UCSD submitted proposals again, but the board chose Sharp.
“This time we were able to answer all of Tri-City’s requests in terms of what they were really looking for,” said Scott Evans, Sharp's chief strategy officer and market CEO.
Tri-City Medical Center closed its labor and delivery service two years ago. This deal with Sharp is expected to bring it back.
"Sharp Healthcare delivers more babies in San Diego than any other health care providers," Evans said. "It’s definitely one of our core strengths.”
“To be able to provide women’s health services in ways that are not accessible currently in North County, to me, is truly one of the most exciting opportunities that lie within this partnership,” Ma said.
Since Sharp is a private health care system, the deal will need voters’ approval, but that vote is at least a year away.
Under state law, the vote needs to happen at least 88 days after the board's approval, but since there isn't an election this November, the primary election on June 2, 2026, is the most logical date.
"A simple majority of the health care district voters would have to approve any lease," Evans said. "And it would be very similar to what we have done in Grossmont for more than three decades already."
Sharp's experience successfully navigating public-private partnerships was one of the reasons it was chosen, Ma said.
"Grossmont was a shining example of what can happen when a system and a local community — a hospital — is supported with a national health system like Sharp," he said. "Sharp Grossmont today looks vastly different from what it was just two decades ago."
“It is our East County flagship campus," Evans said. "And I think we would be very fortunate to be able to create the same thing in Tri-City.”
The two entities still need to sign a letter of intent, which is expected to be completed this week.
