Grossmont Healthcare District is continuing lease negotiations with Sharp HealthCare

The Grossmont Healthcare District (GHD), the public agency that serves as landlord of Grossmont Hospital, has announced it is continuing negotiations with Sharp HealthCare to add another 30 years to its existing lease agreement for the operation of the La Mesa hospital.

The GHD board recently voted to finalize discussions with Sharp officials to extend the current 30-year lease, which was signed in 1991 and is scheduled to expire on May 30, 2021. The parties are discussing extending the lease to May 29, 2051.

At a recent GHD meeting, the board voted 4-1, with board member Betty Stieringer in opposition, to direct staff to prepare a letter of intent that would include basic terms for a 30-year lease extension with the Grossmont Hospital Corp., the legal entity associated with Sharp HealthCare that manages and operates the 536-bed hospital.

The letter of intent, representing one of several steps required for a lease extension, is expected to be considered by the GHD board in early 2014. If the GHD board approves the letter of intent, planning would be finalized for a future ballot measure on the lease extension.

Ultimately, East Region voters will have the final approval of any lease extension. In 2005, California lawmakers passed AB 1155 authored by former Assemblyman Jay La Suer of La Mesa, allowing a lease extension of the publicly-owned hospital to Sharp HealthCare, following voter approval. Previously, state law was silent on how healthcare districts could extend their leases with hospital operators.

“The letter of intent was an important step for the board to ensure the provisions for a possible lease extension are progressing in the right direction,” said Barry Jantz, GHD CEO. “We look forward to the public process and community input as the board considers placing a lease extension measure on the ballot to continue our public-private partnership with Sharp HealthCare.” 

Public testimony at the special GHD board meeting included comments by La Mesa Mayor Art Madrid. Madrid who encouraged GHD board members to maintain current services offered at the hospital.

Sharp Healthcare, a San Diego-based health care delivery system with more than 15,000 employees, operates four full-service, acute care hospitals, three specialty hospitals, two affiliated medical groups and a health plan. Grossmont Hospital is the largest not-for-profit, full-service acute care hospital in San Diego’s East Region, serving the community for more than 50 years.

The Grossmont Healthcare District, formed in 1952 to build and operate Grossmont Hospital, serves as landlord of Sharp Grossmont Hospital, including ownership of the property and buildings on behalf of East County taxpayers. The District, a public agency, supports various health-related community programs and services in San Diego’s East County region, is governed by a five-member board of directors, each elected to four-year terms, who represent more than 500,000 people residing within the District's 750 square miles in San Diego's East County.