Dispute over breach of lease agreement
YUMA, Ariz. (KYMA, KECY) - The Yuma Regional Medical Center (YRMC) filed a lawsuit against Hospital District No. 1 of Yuma County Friday.
YRMC sits on land owned by the Yuma County Hospital District No. 1. According to the YRMC website, "The district is governed by a five-member board elected at-large by popular vote. The district leases the land to the YRMC corporation, and in exchange, YRMC must provide community benefits and hospital services."
In its lawsuit, YRMC claims the Hospital District breached the lease agreement by "revising" the annual budget to include a change in rent.
The lease between the hospital and the Hospital District requires YRMC to pay the administrative expenses of the Hospital District.
Until recently, YRMC states the these expenses were set at $25,000 per year. However YRMC says the Hospital District presented YRMC with a "revised" budget of $3 million, insisting YRMC pay that amount as rent.
YRMC says it is now suing Hospital District No. 1, saying this comes after multiple efforts to "reconcile" the lease issue.