Judge clears path for single health care district in Imperial County

A California Superior Court judge says a plan to consolidate distressed hospitals in Imperial County under a single health care district can move forward, dismissing a lawsuit that sought to block the plan.

Last April, Pioneers Memorial Healthcare District, which operates a hospital of the same name in Brawley, sued the Imperial Valley Healthcare District, created by a 2023 state law, AB 918, to become the sole health care district in the county. The law says the new district will absorb and manage Pioneers, the El Centro Regional Medical Center and the Heffernan Healthcare District, which has only operated health programs since its acute care hospital closed in 1998. 

Pioneers, which has pushed back against consolidation, claiming its finances are more stable than El Centro’s,  said the legislation was unconstitutional and that the state bypassed voters, denying them the chance to weigh in on how their tax dollars would be used.

Judge L. Brooks Anderholt denied those claims, arguing the state Legislature had the authority and a good reason to enact the legislation.

“The failure of prior local efforts to create a countywide healthcare district, and the need for immediate action to address the healthcare crisis justified the special legislation,” the judge wrote in the decision.

IVHD Board President Katherine Burnworth applauded the decision, saying the lawsuit was a distraction from the ultimate goal of providing better services to residents.

“IVHD is eager to move beyond costly litigation and work together with our partners to deliver more sustainable and expanded health services for Imperial Valley residents,” she said.

Catalina Alcantra-Santillan, Pioneers board president, said she was disappointed by the ruling, adding that their petition was about protecting the democratic rights of the community.

“The voters of Pioneers deserve the chance to have their voices heard on the dissolution of Pioneers Memorial Healthcare District, and to ensure that our access to quality healthcare is not impeded by the financial disarray of ECRMC,” she said, adding that the district is filing an appeal.

The decision means that, barring intervention from a higher court, by the end of the month Pioneers Memorial Healthcare District should be dissolved and acquired by IVHD. Also per the law, voters will have the chance to weigh in on the funding structure in the 2026 election cycle.

Proponents of the change say it will result in better health care and health outcomes for rural Imperial County’s patients, who have long suffered from high rates of diabetes, asthma and other chronic conditions while struggling to find specialty care within hours of their homes. 

Consolidation would help the hospitals save money by reducing the duplication of resources and attract new providers, they’ve said. 

Since its formation, IVHD has already absorbed the Heffernan Healthcare District and has been negotiating a deal with El Centro Regional. Pioneers Memorial Healthcare District has been an outlier.

The recent developments reflect forward motion on the consolidation issue, a problem local leaders have argued over for decades, reaching only impasses. 

In the latest debate, the two hospitals have disagreed over the hospitals’ finances.

Consolidation was the state Legislature’s answer to bolster the region’s health care system following financial struggles at both Pioneers and El Centro Regional over the years, particularly following the COVID-19 pandemic.

The most recent problems occurred at El Centro Regional went into debt while undergoing a costly retrofitting project to meet state requirements. The hospital closed its maternity ward, leaving Pioneers with the last one in the county.

Both hospitals have struggled financially, especially as both serve communities that are more economically challenged, which means more patients on public insurance plans, which tend to reimburse at lower rates than private plans. In turn they are less able to provide more lucrative specialty services to make up the difference.

Many believe consolidation to be the clearest answer.

“If everything is under one umbrella, it’s going to cost less,” said Dr. Majid Mani, a diabetic eye surgeon in the valley who has been an avid proponent of the law. He rejoiced at the judge’s decision and added that the consolidation would afford the hospitals better returns on public health insurance plans.

“Our goal is to improve the quality of healthcare and expand services that were previously unattainable due to competition between the two hospitals,” IVHD president Burnworth said.

Pablo Velez, the CEO of El Centro Regional, has backed the consolidation, saying that it would help both hospitals build out new programs and attract more providers.

In a statement to inewsource, Pioneers’ district vice president pointed out that ECRMC has yet to accept the acquisition deal. Velez in turn praised IVHD for having moved efficiently over a short period of time to establish itself and begin negotiations.

“When you look at the timeframe of what’s been happening with the negotiations, that’s a very short timeframe,” Velez said.

Burnworth said that bringing the acquisition of ECRMC over the finish line is one of her top priorities.

While some celebrated the judge’s decision, for others it has only reinforced frustrations over the state law and the questions it opens up, namely how voters will pay into the new district.

Supervisor Ryan Kelley, whose district includes Pioneers in Brawley, says that the decisions should have been made locally and that the state has created new problems for Imperial Valley officials. He says it essentially transferred Imperial Valley health care assets to a new agency which hasn’t earned his trust, or that of voters.

“I know that the assembly member is no longer in the Legislature, his part in this production has either been written out or his scenes have already been played,” Kelley said, adding that decades of work building Pioneers was altered with former state Rep. Eduardo Garcia’s signature sponsoring the legislation that became law.

Burnworth, from the new district, said that her focus is on the future.

“I understand that some in the community have strong opinions about how the consolidation under IVHD through AB 918 came about. While I agree with some concerns and disagree with others, the reality is that none of us can change the past.”

She added that IVHD is planning workshops for Pioneers employees to “address any misunderstandings and prepare for a smooth transition.”

Like other local leaders, community advocate Eric Reyes of Brawley-based Los Amigos de la Comunidad expressed concerns over residents’ tax dollars being used to address hospital debt, but added that he respects the court’s decion and hopes it will lead to improved services.

“The hope is a consolidated new district will be more effective in meeting the health care needs currently not being met, and expand to include more specialized services desperately needed locally, such as a trauma center and children’s services,” Reyes said.