Rancho Mirage City Councilman Steve Downs is publicly opposing a controversial non-compete clause included in the lease extension of Desert Regional Hospital to Tenet Healthcare.
The lease, approved by voters last November, allows Tenet to continue operating Desert Regional through a renewal agreement with the Desert Health Care District. As part of that process, the district filed a validation action in Riverside County Superior Court on December 31, seeking judicial confirmation that the lease and its terms are legally sound. Such actions are intended to prevent future legal challenges.
Downs, however, argues that the non-compete clause—added at Tenet’s request—is problematic. In an interview, he said the provision effectively blocks the district from issuing healthcare grants to competing organizations, specifically targeting Eisenhower Health.
“The non-compete is aimed at a single provider,” Downs said. “And to eliminate the most qualified healthcare provider in the Coachella Valley is wrong.”
The councilman emphasized that the district’s funding includes not just lease revenue but also property tax dollars. Those tax dollars, he says, are meant to support healthcare for the broader community—not to be restricted by provisions that limit competition.
While Downs supports leasing the hospital to Tenet overall, he believes the non-compete clause is contrary to the district’s mission. He also pointed out that Eisenhower Health has already filed an objection to the validation action.
When asked about public disagreement, Downs noted, “If you’re telling me you disagree with me about the non-compete clause, I’d remind you this district was created to fund health care providers—not exclude them.”
The full opinion piece by Steve Downs is available at DesertSun.com.
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By: Fred Roggin
June 4, 2025
