Snell & Wilmer Appellate Win Paves Way for Single Healthcare District in Imperial Valley

SAN DIEGO – Snell & Wilmer secured a win before the Fourth District Court of Appeal in San Diego on January 15 on behalf of the Imperial Valley Healthcare District (IVHD), clearing the path for the consolidation of Imperial County’s health care services under a single district.

The decision comes one week after the firm, together with the State Attorney General’s Office and counsel for co-respondent Imperial Local Agency Formation Commission (LAFCO), convinced the Imperial County Superior Court to dismiss a lawsuit filed by the Pioneers Memorial Healthcare District (PMHD) that challenged Assembly Bill 918. Enacted in 2023, AB 918 mandates the creation of the IVHD and the dissolution of PMHD and the Heffernan Memorial Healthcare District (HMHD), and the transfer of PMHD and HMHD’s assets, rights and responsibilities to IVHD as the successor agency by operation of law.  The bill also mandates a good faith negotiation for IVHD to purchase the only other hospital in the county, El Centro Regional Medical Center. The legislation seeks to address longstanding challenges in the county’s health care system, including service gaps that have led over 13,000 residents to seek medical care outside the county in 2022 alone.

PMHD’s lawsuit contended that AB 918 was unconstitutional, arguing that the state bypassed voters and denied them the opportunity to influence the allocation of their tax dollars. However, Superior Court Judge L. Brooks Anderholt rejected these claims in their entirety, affirming the legislature’s broad authority to address the critical health care crisis in Imperial County and reinforcing the state’s commitment to advancing health care initiatives.

According to IVHD’s website, the district is prepared to proceed with its plans to integrate services, streamline operations and enhance the quality of care provided to residents. The consolidation aims to reduce redundancies, optimize resource utilization and ensure that all community members have access to comprehensive health care services within the county.

Adriana R. Ochoa, a partner at Snell & Wilmer, led the Snell & Wilmer team representing the IVHD. Ochoa advises private clients and public agencies, including health care districts and water and wastewater authorities, on public law issues including governance, operations, and acquisition of public services.

**The result portrayed was dependent on the facts of that case, and the results will differ if based on different facts.