UC San Diego Health has decided to end negotiations for a potential partnership with Tri-City Healthcare District in Oceanside, California.

Both parties announced in late April that they were still finalizing the agreement, with an expected agreement by May.

On July 24, UC San Diego Health presented Tri-City with a final revised offer but reached no agreement, as stated in a July 26 news release from UC San Diego Health.

The final proposal included a financial recovery and growth plan featuring a $100 million cash infusion over the first two years and a credit line to support Tri-City’s financial stability for the first five years of the partnership.

Under this proposal, Tri-City’s assets and liabilities would have transferred to UC San Diego Health, with Tri-City employees transitioning to UC San Diego Health by the fifth year.

The proposal also outlined a five-year clinical program growth plan, which included comprehensive cancer services with access to clinical trials and subspecialty care. Tri-City’s neurological, cardiovascular, behavioral health and maternity services were part of the plan.

The final proposal also included infrastructure improvements, investments in capital equipment, and the adoption of the Epic electronic medical record system.

Despite the inconclusive negotiations with Tri-City, UC’s July 26 press release clarified that “UC San Diego Health remains committed to serving the communities of North County and is continuing with planned expansions of patient care services.”