Palomar Health counts on ASC to bring gains amid ‘significant financial dip’

Poway, Calif.-based Palomar Health has faced revenue declines, warning from credit agencies, increased competition and high debt costs, leading to a “significant financial dip” in its most recent fiscal year, according to an Aug. 18 report from the Voice of San Diego.

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Now, Palomar is counting in part on an upcoming ASC to turn its financial status around. The health system saw income operations drop from $42 million in 2022 to $9 million in 2023. It also has $709 million in outstanding debt. 

Its total cash on hand also dropped by $70 million from 2022 to 2023. In June, Moody’s downgraded its outlook on Palomar from stable to negative. 

Now, Palomar is projecting $55 million in operating income in fiscal year 2024, a $46 million increase. It also plans to grow its cash on hand to $205 million. 

When asked by The San Diego Union-Tribune how the organization was planning such a massive financial turnaround, Diane Hansen, Palomar’s CEO, cited a new infusion center, new medical office buildings and a new ASC. 

The system is also launching a new nurse incentive program that pays nurses up to $100,000 in bonuses over three years. 

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