Desert Regional Lawsuit Raises Questions Over More Than $1 Million in Residency Grants

Desert Regional Medical Center is suing a local medical group and two physicians over allegations involving more than $1 million in public funding connected to medical residency programs in the Coachella Valley.

The lawsuit names Desert Physicians Medical Group, or DPMG, along with Dr. Tae Kim and Dr. Gemma Kim.

According to the lawsuit, more than $120,000 in Song-Brown funding was provided to DPMG between October 2022 and January 2025 to support Desert Regional's residency programs. The hospital alleges the money was not transferred to its accounts or properly accounted for.

The lawsuit also raises questions about more than $1 million in grant funding from the Desert Healthcare District.

In 2023, the district approved a $1,057,396 grant for DPMG to purchase and operate a second mobile medical clinic serving underserved communities. The lawsuit alleges the grant application included $240,000 annually for resident salaries, even though Desert Regional says the hospital was already paying those residents.

The lawsuit further alleges that DPMG did not maintain required records related to other grants, including CalMedForce funding. Desert Regional says the loss of three grants prevented the hospital from accessing $360,000 in additional funding. Court documents cited in reporting indicate a termination letter referenced missing documentation, but that does not establish that the Kims took the money or caused the missing records.

The lawsuit also includes allegations involving professional liability insurance records for two physicians. Desert Regional alleges that documents provided during a compliance review falsely indicated malpractice coverage existed. The defendants dispute the allegations.

The case goes beyond funding. Desert Regional has also alleged problems involving resident supervision, scheduling, medical records and other aspects of the residency programs. Those claims have not been proven in court.

Desert Regional has said it does not comment on active litigation but is confident in its position and the judicial process.

An attorney representing the Kims and DPMG said the defendants deny the allegations and intend to defend the case. DPMG has also filed its own lawsuit against Desert Regional and related parties.

A trial-setting conference in the case is scheduled for Oct. 30.

The legal proceedings will determine the facts surrounding the competing allegations.

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