Palomar Health Medical Group has dropped plans to take over operations at Graybill Medical Group locations in North County, but is mum on why the change occurred. In a statement released last week, Palomar announced a “new agreement” with Graybill that will allow the primary care provider to continue seeing patients at eight locations despite ongoing plans for Graybill to end an existing affiliation between the two entities on Nov. 11. Graybill, with about 45,000 patients, has been a significant player in North County health care since 1932 and merged with Palomar Health Medical Group in 2020. Citing a recent cyber attack, one which left the joint entity operating with severely degraded technological capacity for several months, Graybill announced in September that it was looking for new office spaces after notifying Palomar that it intended to dissolve the partnership. Long-term leases for its many facilities, locations where Graybill doctors have seen patients for decades, were to be staffed instead by Palomar doctors starting on Nov. 11, forcing Graybill executives to search for new office space in the communities where their patients live. But Palomar’s statement, dated Oct. 16, indicates that Graybill will continue to serve patients at existing locations in Murrieta, Temecula, Fallbrook, Vista, Oceanside and San Marcos and at Escondido offices on El Norte Parkway and Second Avenue. Dr. Vanessa Peters, Graybill’s chief physician officer, said in a recent interview that Palomar was willing to return the long-term leases for the buildings it currently operates in, but does not own — the leases that were transferred to Palomar in 2020 — and sell the medical provider the equipment in those buildings. “We have come to a settlement agreement to allow that to occur,” Peters said. “Graybill Medical Group is grateful for the opportunity to work amicably with PHMG through this process to ensure that we continue to provide excellent patient care and have a smooth transition that doesn’t endanger anybody’s health.” Peters said she did not want to speak for Palomar when asked why the organization changed its mind. Palomar did not respond to a request for comment.