Blythe, Calif.-based Palo Verde Hospital is at risk of shutting down due to financial challenges over resignations and months of litigation, The Desert Sun reported May 30. Becker’s reached out to the hospital, which remains open as of June 2.
Congressman Raul Ruiz, MD, raised concern for the 51-bed hospital in a May 28 letter, obtained by the Sun, to California Gov. Gavin Newsom, asking the state for $4 million in emergency funding, otherwise the hospital could shutter “as soon as tomorrow.”
“This is a public health emergency,” Dr. Ruiz said in the letter. “The closure of this hospital puts lives at risk and would leave a massive health care gap in one of the most underserved regions of our state. Patients will suffer. People will die.”
Dr. Ruiz pointed to events over the last six months including operating system replacements, protracted litigation, the sudden resignation of key finance leadership, and a cyber incident that paused billing for 45 days. These issues resulted in a negative monthly average cash flow of around $1 million for the hospital. $2.8 million was also deducted from the hospital’s line of credit May 22 from Provident Bank, which left it with only $400,000, or “enough to operate for barely two weeks,” the letter said.
Should the hospital close, patients would be forced to seek care at Indio, Calif.-based JFK Memorial Hospital and Needles, Calif.-based Colorado River Medical Center, both around a two-hour drive away.
Dr. Ruiz said the hospital’s closure would result in “dire public health implications” for the rural and underserved area due to the loss of critical and urgent care services.
“The California health and human services agency, along with our departments, is coordinating with local, state, and federal officials, hospital leadership and local partners to offer support to Palo Verde Hospital and the community it serves,” a spokesperson for Mr. Newsom said in a June 2 statement shared with Becker’s. “This includes the department of health care services advancing Medi-Cal payments to the hospital, and state coordination with local emergency officials should the hospital need to transfer patients to other facilities. Last week, DHCS expedited the disbursement of approximately $560,000 in Medi-Cal fee-for-service supplemental payments to support hospital operations and protect access to care for the community. These funds were released early to provide urgent financial support to maintain patient care while longer-term solutions are explored.”
Becker’s has reached out to Dr. Ruiz for comment and will update this story should more information become available.
