El Centro council approves asset transfer of regional hospital to Imperial Valley Healthcare District

The El Centro City Council approved an asset transfer agreement to transfer assets and liabilities of El Centro Regional Medical Center to the Imperial Valley Healthcare District, council members said during a public meeting. The motion passed with four votes in favor and one abstention.

Robert Sawyer, city staff presenter, told the council the agreement formalizes a March 11, 2025, term sheet and “includes property ownership, license transfers, financial contributions, and detailed representations and warranties governing the transition of the hospital operations and associated assets to IVHD.” Sawyer said the agreement also “addresses critical financial and legal matters such as bond obligations, distress loans, and closing requirements, ensuring a clear framework for the transfer process to continue.”

The transfer follows state legislation creating the district. Sawyer referenced AB 918 as the urgency legislation that “immediately established the Imperial Valley Healthcare District,” and said the city and partner organizations negotiated a comprehensive term sheet before bringing the agreement to council.

Members of the public who spoke during the meeting urged approval. Isabel Solis, a resident of Brawley, said she supports the transfer and described cases in which local patients had to travel for care: “I have seen so many children who have to be airlifted or sent or have to travel all the way outside of our community to get services.” Karla Sigman, a retired educator and local trustee, said, “Support this transfer. Vote for this transfer because when we when we unite, we’re stronger.” Eric Montano Reyes, executive director of San Diego Silicon Valley, said the region needs a stronger, unified medical system and urged the council to “transfer the assets as required in my law.”

Council member Crankshaw abstained from the vote. He said, “As my wife is a long time, employee of the hospital... I'm gonna out of abundance of caution, I'm gonna abstain from this vote.” The council recorded the motion as passing with four yes votes and one abstention.

During the meeting the mayor asked for a motion and second to adopt what was identified as the resolution associated with the transfer; a motion to approve “the asset transfer agreement by and among the city of El Centro, El Centro Regional Medical Center, and Imperial Valley Healthcare District” was made and seconded and then voted on. The meeting record references a resolution number in the form “25-51” in connection with the item; the agenda language on file listed the item as the asset transfer agreement and the accompanying resolution.

The acting city manager, speaking after the vote, thanked council and staff and said the delays that preceded the vote were necessary for due diligence. The manager said staff and legal counsel had worked to ensure “the safety of the citizens of our community” and to “dot the i's and cross the t's” before closing the transaction, and said the agreement today leaves the city “poised to move forward with a much stronger health care district for the entire county.”

The agreement as described by city staff includes provisions governing property ownership, license transfers, specified financial contributions, and conditions related to bonds and distress loans; it also calls for closing requirements that staff said must be satisfied before title and operations shift to IVHD. No timeline for final closing or detailed dollar amounts were specified in the council discussion and are recorded in the agreement as “not specified” in the meeting record provided.

The council returned the meeting to closed session after the vote.