Council member urges Rancho Mirage to weigh in on Desert Healthcare District non-compete clause

Council member Steve Downs told the Rancho Mirage City Council that the Desert Healthcare District’s new 30-year lease of Desert Regional Hospital to Tenet Healthcare, approved by district voters in November 2024, contains a non-compete clause that prevents district grant funds from flowing to Eisenhower Health.

Downs said the Desert Healthcare District filed a validation action with Riverside County Superior Court seeking court confirmation of the lease and its non-compete provision. He said Eisenhower has responded to the district’s validation action and asked the court to refuse to validate the lease’s non-compete provision because the clause would bar the public district from awarding taxpayer-derived grants to Eisenhower, which Downs described as an important local health provider within the district.

Downs outlined the district’s geography and funding: he said the district covers approximately 457 square miles and about 400,000 residents, and that district grants are supported by lease payments and property tax dollars. He argued the non-compete could limit how public funds are spent and asked that the city clerk and city attorney prepare an agenda item and proposed resolution for the next council meeting to consider supporting Eisenhower’s legal challenge.

Mayor Ted Weil and other council members acknowledged Downs’ remarks. The transcript records the request to place a resolution on a future agenda but does not show a formal council vote or adopted resolution at this meeting.