Blythe, Calif.-based Palo Verde Hospital and its community clinic face “imminent closure” Jan. 10 if it does not receive at least $2 million in emergency funding Jan. 9.
Palo Verde Hospital CEO Sandra Anaya and interim CFO Michael Rose said in a Jan. 7 Palo Verde Healthcare District board of directors staff report that the facility has approximately 3.4 days of operating cash remaining and can’t continue operations without state action.
“On Dec. 11, 2025, the Palo Verde Healthcare District funded its required contribution to participate in the Voluntary Rate Range Program for Calendar Year 2024,” the report said. “Absent receipt of VRRP funding from one or more managed care plans this week, the hospital faces imminent closure by Friday, Jan. 9, 2026. At that point, the Board will be compelled to consider initiating the dissolution process.”
After the district provided its required $3.45 million contribution in December, it has yet to receive an expected $9.9 million in VRRP payments from Inland Empire Health Plan, Oakland, Calif.-based Kaiser and Long Beach, Calif.-based Molina Healthcare. The hospital filed for Chapter 9 bankruptcy protection in early October due to cash flow issues, state loan deferrals and service cutbacks.
The next Palo Verde Healthcare District board meeting will be Jan. 14. However, the report recommended an emergency meeting, presumably sooner, “due to the disruption or threatened disruption of public healthcare facilities.”
Becker’s has reached out to Ms. Anaya for comment and will update this story as more information becomes available.
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