Two of the country’s biggest nonprofit health systems didn’t just invest in themselves this summer, they also dedicated funds to other organizations’ survival.
Both Oakland, Calif.-based Kaiser Permanente and Dallas-based Parkland Health stepped up to the plate with millions in grants and loans to support struggling healthcare organizations. Their strategy pointed to a positive trend: more financially healthy systems are making the choice to support their neighbors rather than stand by and watch them struggle.
The deals
In August, Kaiser Permanente committed up to $32 million to help with the expansion of Los Angeles-based Martin Luther King Jr. Community Hospital’s Hope Emergency Center.
The gift, which was the largest donation in the 131-bed nonprofit hospital’s history, included a $25 million charitable grant, along with the purchase and loan of a $7 million modular building to keep its emergency care operational amid construction. The funds will also support long-term emergency service improvements in South Los Angeles.
The hospital opened in 2025. Its emergency department was built with up to 29 treatment bays for about 25,000 visits a year. Now, the hospital now sees roughly 125,000 annual visits, with patients triaged in parking lot tents. The gift comes as MLK Community Healthcare is separately bracing for $80 million to $100 million in annual Medicaid cuts tied to HR 1.
“This is about more than expanding an emergency department. It is about strengthening the healthcare infrastructure that Los Angeles families depend on today and will continue to rely on for generations to come,” Greg Adams, chair and CEO of Kaiser Permanente, said in an Aug. 11 news release.
In Texas, Parkland Health provided $18 million in financial assistance in late July to Dallas-based Metrocare Services, the largest provider of mental health and development disability services in Dallas County, after it projected a funding shortfall of approximately $10 million to $15 million.
The funds cover immediate operating expenses as the behavioral health provider works to implement a financial stabilization plan. The gift aims to ensure patient care continuity and preserve disability, homeless and mental health services.
“This collaboration reflects a shared commitment to patients, providers, and the taxpayers of Dallas County,” a spokesperson for Metrocare said in a statement shared with Becker’s. “Together, we are focused on preserving access to critical disability, homeless, and mental health services, supporting the workforce that delivers that care, and ensuring these essential community resources remain strong for the future.”
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