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.
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.