As hospitals in the U.S. continue to grapple with tightening finances, Southern Inyo Healthcare District in Lone Pine, Calif., had just eight days of cash on hand as of Sept. 12, CalMatters reported Sept. 19.
Kevin Flanigan, MD, CEO of the 37-bed critical access hospital confirmed the cash position with the publication. Local leaders also sent a letter to California Gov. Gavin Newsom and requested an emergency $3 million to stabilize the hospital’s finances through the end of 2025.
“If they don’t come through and nobody else comes through then … the board of directors is going to have some very hard decisions to make,” Dr. Flanigan said.
Southern Inyo also has around $2 million in unpaid bills, but has received around $11,000 in owed medical service payments since asking for the state’s help. Dr. Flanigan told CalMatters that state emergency funding would allow the hospital to cut operating costs and let the hospital access the added revenue it expects in January.
Dr. Flanigan also said the $50 billion Rural Health Transformation Program, part of the recently passed One Big Beautiful Bill Act, will not be available in time. On Sept. 15, CMS said states can apply for the program from now until Nov. 5, with states, not hospitals, receiving the funds.
Will Wadelton, Inyo County supervisor, said he is “pursuing all other options to keep the hospital solvent,” as the county government lacks the funds to help the hospital out.
The news comes after Willows, Calif.-based Glenn Medical Center shared plans in late August to shutter its emergency department and close the hospital shortly thereafter, following CMS’ plan to revoke its critical access hospital designation on Oct. 21.
Cash on hand also varies across multiple hospitals and health systems in the U.S. As of Aug. 29, Becker’s has reported on 35 health systems’ days of cash on hand, with Texas Health Resources in Arlington, Texas, at 520.8 days and Tower Health at 38.
A KFF analysis also found that hospitals typically have more than 200 days of cash on hand, with those with less than 80 considered “highly vulnerable.”
Becker’s has reached out to Southern Inyo Healthcare District and will update this story should more information become available.
