City of El Centro Approves Hospital Transfer Agreement and Addresses Community Concerns
EL CENTRO, Calif. (July 28, 2025) — The El Centro City Council has formally approved a revised Affiliation and Transfer Agreement (ATA) with the Imperial Valley Healthcare District (IVHD), marking a significant milestone in the proposed transfer of ownership of El Centro Regional Medical Center (ECRMC).
The approval signals a major step forward in a long-discussed plan to unify healthcare services across the Imperial Valley under a single district. According to city officials, the updated agreement was the product of months of negotiation between the City, IVHD, and ECRMC, and is designed to support a smooth and coordinated transition of hospital operations and assets.
“We are dedicated to fostering a sustainable, unified healthcare system that meets the needs of our residents,” said Mayor Sonia Carter. “This updated agreement reflects months of careful collaboration and positions us to move forward in a way that is respectful and beneficial to all parties involved.”
In advance of the council vote, the City of El Centro released an open letter to residents on July 23, addressing growing questions and concerns surrounding the future of ECRMC — particularly from hospital employees and members of the public worried about potential layoffs or service interruptions.
“We hear the frustration, particularly from those on the frontlines of healthcare, and we want to assure the public that we are actively engaged in a thoughtful, thorough process to help ensure a positive outcome for our community,” the City wrote in the letter.
Among the key points addressed in the letter:
No mass layoffs are expected. While all ECRMC employees will be legally terminated as part of the operational handoff, they will be immediately rehired by IVHD.
A six-month timeline is anticipated for the full asset transfer, pending resolution of regulatory and legal matters.
Roughly $200 million in real estate assets, including the 161-bed hospital, will be transferred to the district.
The City will also contribute $5 million in funding at closing, with the stipulation that the money be used to support healthcare in the Imperial Valley.
City leaders emphasized that El Centro has supported the district’s formation from the beginning — offering resources, meeting space, and staff assistance without reimbursement during the early stages of IVHD’s development. That support, officials said, was a proactive decision intended to help build a unified and more resilient healthcare system for the region.
“The City of El Centro still carries the responsibility of safeguarding the financial health and long-term prosperity of the entire city,” the letter continued. “This is why the City is carefully evaluating each component of the agreement.”
The council also noted that this transition represents more than a change in ownership — it represents a shift in responsibility, both in terms of healthcare outcomes and financial accountability.
Updates on the finalization of the agreement and implementation timeline are expected in the coming weeks.