SAN DIEGO, CA — January 17, 2025 — Palomar Health, California’s largest public healthcare district, is proud to announce the successful completion of its recent union contract negotiations. The healthcare organization was able to build relations with the union 18 months prior to the contract expiration date, a pivotal move in reaching an agreement in record time. Focused on fostering a work environment that benefits both workers and employers, the new union contract will enable Palomar Health to remain competitive in the market, stay at the forefront of AI innovation and technology, attract world-class team members and navigate the evolving regulatory landscape.
The agreement, a four-year contract term ratified in November 2024 and expiring in May 2028, is designed to cultivate an environment benefiting both employers and workers of Palomar Health. The healthcare organization took a limited bargaining approach, which allowed them to focus on the articles most important to both parties. In total, 33 articles were discussed and agreed upon in the negotiation.
Under the terms of the new contract, Palomar Health will remain committed to proactively addressing the impacts of the healthcare minimum wage law to remain competitive in the market and continue to reduce turnover. Additionally, the agreement includes provisions for implementing competitive compensation increases to reduce turnover and strengthen Palomar Health’s market position.
The agreement includes updated measures designed to enhance management’s operational flexibility, reduce administrative burdens and position Palomar Health and its employees for future success. While AI technologies remain a significant concern for unions across the nation, Palomar Health conveyed a message of solidarity by committing to thoughtful implementation of these advanced tools. Their strategic and balanced integration will streamline operations, increase efficiency and enhance productivity, all while reducing the burden of repetitive tasks on the Palomar Health workforce.
“At Palomar Health, we believe that embracing innovative technological advancements is not just about staying ahead,” said Diane Hansen, CEO of Palomar Health. “It’s about creating a workplace that empowers our employees, drives business growth and ensures a sustainable and competitive future.”
The new contract also lays the foundation for a more resilient, skilled workforce that is prepared for the challenges and opportunities of the future. Essential training and reskilling programs will ensure employees are equipped to thrive in this new landscape, resulting in a more agile, future-ready labor force.
Palomar Health is also committed to advocating for policies that ensure fair treatment of workers, promote local hiring initiatives and support operations in navigating the evolving regulatory healthcare landscape. With employee satisfaction and wellbeing of the utmost priority to Palomar Health, the organization remains dedicated to their mission to heal, comfort and promote health in the communities they serve.
