Palomar Health and Graybill Medical Group Execute a Letter of Intent to Pursue Affiliation


ESCONDIDO, Calif. – The boards of directors at Palomar Health and Graybill Medical Group have agreed to execute a letter of intent to negotiate an affiliation agreement between the two entities that would integrate Graybill Medical Group into Palomar Health. 

Palomar Health is a renowned healthcare system providing high-quality medical care to the residents of North San Diego County since 1950. “The level of care combined with the core values of both organizations is an outstanding fit for our communities in and around Northern San Diego,” said Floyd Farley, CEO of Graybill Medical Group. “Our patients deserve nothing less than the cutting-edge healthcare offered by Palomar Health through its hospitals, care facilities and ambulatory care centers.” 

Graybill Medical Group is the region’s largest independent multi-specialty medical group who has helped North County families achieve optimal health and wellness for more than 80 years. “Graybill physicians have worked with Palomar Health for a number of years, but a closer affiliation with both organizations will allow more opportunities for Graybill to grow and provide additional services to our patients close to home,” added Dr. Alejandro Paz, President of Graybill Medical Group.

“Both Palomar Health and Graybill Medical Group have a long history of providing award-winning healthcare in our region,” said Diane Hansen, president and CEO of Palomar Health. “A strong affiliation with quality medical professionals is key to our success. Our shared commitment to the community and our pledge to provide and expand high-quality primary and specialty care is what makes this affiliation beneficial. I am looking forward to the possibility of working more closely with Graybill to continue this commitment for our patients.”

Palomar Health is the most comprehensive healthcare system in North County with hospitals in Escondido and Poway providing medical services in almost all fields of medicine. As part of the Mayo Clinic Care Network, Palomar Health is the only health system in San Diego with access to Mayo Clinic knowledge and expertise. As a nationally ranked system, Palomar Health was recently named as one of “America’s 250 Best Hospitals” by Healthgrades, putting it in the top 5% of all US hospitals based on clinical quality outcomes.

In addition to the commitment to high-quality patient care and a shared geography, Palomar Health’s focus on expanding top-performing primary care captured the attention of the Graybill Medical Group Board according to Farley. “Our Board was not only looking for a healthcare system that could benefit our group; we were also searching for an engaged partner. I am confident Palomar Health is the perfect partner for our patients and physicians,” he said. 

The signing of the letter of intent means that Palomar Health and Graybill Medical Group have agreed to non-binding conditions of a prospective affiliation. Over the next few months, both parties will engage in additional due diligence, research and discussions to work toward a definitive agreement. 


About Palomar Health

Palomar Health is the most comprehensive health care delivery system in northern San Diego County and the first California member of the Mayo Clinic Care Network. It is the largest public healthcare district by area in the state, with more than 500,000 residents, and is governed by a publicly-elected board of directors. Palomar Health has several facilities serving North County, including hospitals in Escondido and Poway, and a skilled nursing facility in Poway. The health system provides medical services in virtually all fields of medicine, including primary care, cardiovascular care, emergency services, trauma, cancer, orthopedics, women’s health, rehabilitation, robotic surgery and bariatric surgery. For more information about Palomar Health, please visit

About Graybill Medical Group

Graybill Medical Group is the largest independent medical group in the north San Diego county and southwest Riverside county area.  Its physicians and practitioners provide more than 350,000 patient visits annually. More than ninety physicians and advanced practitioners offer a broad range of services including: 

Primary care services, including family medicine, internal medicine and pediatrics

Urgent care and evening hour care

Specialty care services, including cardiology, ear, nose & throat, functional medicine, gastroenterology, general surgery, orthopedic surgery, sports medicine and urology, hospitalist and SNF-care specialists and case management.

Graybill has locations in Escondido (Second Avenue and Grand Avenue), Oceanside, Vista, San Marcos, Sabre Springs, Ramona, Valley Center, Fallbrook, Murrieta, and Temecula. For more information about Graybill Medical Group, please visit

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