The Palo Verde Healthcare District has received a $1 million loan from Riverside County (Calif.), and is in discussions for an emergency department management takeover to keep Blythe, Calif.-based Palo Verde Hospital afloat.
The news comes after the district accepted a $330,000 emergency bridge loan from the city of Blythe on Jan. 12. Palo Verde Hospital’s CEO, Sandra Anaya, and interim CFO, Michael Rose, said in a staff report that the hospital stood to close Jan. 10 if it did not receive at least $2 million in emergency funding by Jan. 9.
“[The] county proposes to assemble a stakeholder ‘strike force’ led by the county to independently stabilize and manage only the hospital’s emergency department for approximately six months, assess current conditions and make recommendations for next steps,” the county’s fourth district supervisor, V. Manuel Perez, and executive officer, Jeff Wagenen, said in a Jan. 14 statement. “This could begin as soon as feasible.”
To avoid a “detrimental” impact on the community, the county also proposed a $1 million loan to Palo Verde Hospital’s ED “as the district agrees to the proposal related to the county-led independent strike force,” according to the statement.
“This will sustain the hospital for a few weeks while the county sends a strike force in to take over operations and look for long-term solutions,” a spokesperson for the city said in a statement shared with Becker’s.
A Jan. 22 news release from Palo Verde Hospital said that its board, along with its financial, legal and restructuring consultants are continuing to evaluate available options to ensure stabilized operations and a long-term solution for the hospital.
“These discussions involve multiple parties and complex factors, including financial, operational, and regulatory considerations,” the release said. “As a result, the situation remains uncertain, and no single outcome can be guaranteed at this time.”
Editor’s note: This story was updated Jan. 23 at 3:12 p.m. CT.
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