This afternoon Yuma Regional Medical Center (YRMC) filed a lawsuit in Maricopa County naming Hospital District No. 1 of Yuma County as the only defendant.
YRMC is an independent hospital that, for its entire history, has completely funded all its operating expenses without ever having to seek a tax from the residents of Yuma County. As a result, the lease between YRMC and the Hospital District requires YRMC to pay the administrative expenses of the Hospital District, which historically were approximately $25,000 per year. Earlier this year, the Hospital District presented YRMC with a $3 million “revised” budget and insisted YRMC pay that amount as “rent.” YRMC asked over and over for the details behind that budget, and were told only that the budget was for “legal fees.”
YRMC has made sincere and private efforts to reconcile this issue with the Hospital District over the past several months. Unfortunately, those efforts have not been successful, but it has not been for lack of trying. YRMC even asked the Hospital District to pause this dispute to allow YRMC to concentrate on providing care to the community during the COVID-19 pandemic, but the Hospital District refused.
YRMC reached the point where it was necessary to ask a Court to decide this controversy and to put these issues to rest once and for all. YRMC’s claim is that the Hospital District breached the lease and covenant of good faith and fair dealing by insisting it pay the Hospital District an annual budget of $3 million or be in violation of the lease.
In its lawsuit, YRMC asks the Court for a declaration that YRMC has not breached the lease and is not obligated to pay the Hospital District’s unprecedented budget. Even in these challenging times for healthcare providers, YRMC’s overriding commitment is to care for the community we serve, despite these unnecessary distractions.