The company that operates Palm Springs' publicly owned hospital is taking sides in the campaign for the elected board that owns the hospital. An opponent of one candidate the company is backing criticized the move, saying it's inappropriate for the people operating the hospital to try to pick the public officials who ultimately oversee it.
Desert Regional Medical Center is listed as a sponsor of a campaign committee that is fundraising to support three candidates for seats on the elected board of the Desert Healthcare District, the public agency that owns Desert Regional Medical Center.
The hospital is managed by a branch of Tenet Health under a lease with the Desert Healthcare District.
A hospital spokesperson employed by Tenet, Richard Ramhoff,
provided a statement to The Desert Sun confirming that it was supporting the candidates.
"Desert Regional Medical Center is committed to improving the health of the greater Coachella Valley,” the statement read. “As part of that commitment, we have a longstanding history of supporting qualified organizations, candidates, and campaigns that share the goal of advancing the health and well-being of the community."
The committee is listed on the state-run Cal-Access campaign finance and contribution database as “COMMITTEE FOR A HEALTHY COACHELLA VALLEY SUPPORTING C.J. TOBE, S. FRY, AND D. WALLIS FOR DHCD BOARD 2026, SPONSORED BY DESERT REGIONAL MEDICAL CENTER.” C.J. Tobe, Sarah Fry and Desiree Wallis are candidates for three of the five seats up for election this year on the seven-member Desert Health Care District & Foundation board.
So far, with a little under two months to go until Election Day, the committee has not reported receiving any contributions. But only donations received through June 30 have been made public so far, with the next campaign finance disclosure deadline on Sept. 24, according to the California Fair Political Practices Commission.
David “Jax” Kelly, a non-profit president running against Tobe and two other candidates for the board’s District 1 seat, said having the hospital operator support board candidates could damage public confidence in the board. He also said a candidate who's received financial support from a company could be inclined to act in that company's interests instead of the public's.
“So really the essential question is, should a hospital operator with hundreds of millions of dollars at stake in its relationship with a public district also be helping choose the directors who oversee that relationship?” he said.
A Tenet-employed hospital spokesperson and a healthcare district spokesperson both declined to comment on the criticism. The district's interim CEO did not respond to a request for an interview.
Board will select next district CEO
In 2024, voters overwhelmingly ratified a new lease between the hospital and the healthcare district and its associated foundation, an agreement that would see Tenet operate the hospital for 30 more years. When the agreement ends in 2057, Tenet would own and control the hospital, which it has operated since 1997.
Under the approved agreement, Tenet would pay the health care district about $650 million in lease and purchase payments over the next 30 years. The foundation has said that $650 million will be used to invest in health-related programs in the district.
In June, the district announced it was temporarily pausing making new grants as it launches a new strategic plan, which it described as “a roadmap for advancing system-wide improvements in how health and wellness services are delivered throughout desert communities.”
The district is also in the process of hiring a new CEO, with NBC Palm Springs recently reporting that the hiring process was being extended to allow newly elected district board members to participate in that process once they are in their director roles.
Kelly said he thinks it is important for those board members to be able to work with Tenet without being deferential to the company’s interests at the expense of the interests of the public.
He added that “a district director should be able to work productively with Tenet or Desert Regional Hospital while still enforcing agreements, scrutinizing finances, questioning assumptions and saying no when the district's interests and Tenet's interests diverge.”
“Because of all this money and influence that's being bandied about, this is precisely the moment when independence and fiduciary judgment matter most,” Kelly said.
The Desert Sun attempted to reach Tobe, Fry and Wallis for comment on the committee and the hospital’s sponsorship of it.
“I’m honored to have the support of Desert Regional Medical Center and others,” Tobe said in response. “I remain focused on working hard to serve our community.”
Tobe, who touted his personal experience with health care “at every level” and achievements over a decade working for DAP Health in the statement, also said that “if elected, I will lead with integrity, listen to your community, responsibly steward public resources, and always keep patients at the center of every decision.”
Fry made similar comments, saying in a text message, "It means a great deal to me to have Desert Regional Medical Center's support behind this campaign, and I'm grateful to the committee as well."
Wallis could not be reached for comment. She is married to Assemblymember Greg Wallis, a Republican representing much of the Coachella Valley.
Tenet sent mailers in support of candidates in 2016
Tenet has publicly supported candidates in at least one other district election. The Desert Sun reported in 2016 that Tenet sent fliers to residents recommending three candidates for board seats in that year's elections.
Those candidates were retired physician Les Zendle, former hospital executive and one-time Tenet employee Donald Lorack and funeral home owner Mark Matthews, the latter of whom was already on the board. At that time, the candidates were running for three at-large seats. Matthews and Zendle were elected to the seats while Lorack was not. However, they are no longer on the board. The mailer included photos of the three candidates.
At the time, Ramhoff told The Desert Sun: “We are supporting candidates who we believe would best support our employees, our physicians and our patients in the communities we serve.” He added that the company did not coordinate with the endorsed campaigns.
This time around, Ramhoff largely declined to answer further questions from The Desert Sun, including about why Tenet officials thought it was appropriate to support candidates and how they chose those specific candidates. He said his and the hospital’s response would be limited to what is in a prepared statement.
Ramhoff also declined a request from The Desert Sun to facilitate an interview with the hospital’s CEO, Michael J. Dittoro, or anyone else from the hospital or Tenet about the move to support specific candidates.
Kelly noted that the sponsor of the committee was listed as Desert Regional Medical Center rather than Tenet.
When asked why he thought that was, Kelly said “I kind of would let the public decide, but I would guess that if you were going to do a public popularity opinion poll about Tenet versus Desert Regional, that might answer the question.”
When asked about that choice, Ramhoff said: “Tenet has the lease, but this particular filing comes from the hospital itself. It’s the individual hospital, not Tenet, that’s filing it.”
In his own campaign, Kelly has emphasized the need for independent oversight of the hospital, with “hold Tenet accountable and protect the public’s interest through the lease-purchase agreement” being the first priority listed on his campaign webpage.
In an opinion piece for the local news publication The Uken Report, Kelly wrote that voters would be right to question whether candidates endorsed by the hospital would be able to do the same.
“I said this in my editorial: When there's too many corporate interests at the table, does that leave the public standing?” he said.
Paul Albani-Burgio covers growth, development, business and, sometimes, music festivals in the Coachella Valley. Email him at paul.albani-burgio@desertsun.com.
This article originally appeared on Palm Springs Desert Sun: Is Palm Springs hospital's campaign support a conflict of interest?
