The Riverside County Board of Supervisors on Tuesday approved a $1 million loan and a county-led intervention plan to keep emergency services running at Palo Verde Hospital, a financially distressed facility serving residents in the Blythe area near the Arizona border.
County officials told supervisors the hospital has been in a deep financial crisis since filing for bankruptcy last fall. Palo Verde Hospital has already scaled back operations and is currently offering emergency room services only.
If the emergency department were to close, an estimated 20,000 residents of the Palo Verde Valley could be forced to travel between 70 and 100 miles to reach the nearest hospital, according to county staff.
Under the plan approved Tuesday, the county will provide the $1 million loan to the Palo Verde Healthcare District and establish a county-led strike force to stabilize emergency operations for approximately six months. The strike force will be led by Riverside University Health System and is expected to assume day-to-day management of the hospital’s emergency department during that period.
County Executive Officer Jeff Van Wagenen said the action reflects the county’s role as a health care safety net, particularly for rural communities.
“The county has been involved in some manner for years trying to keep that hospital operational,” Van Wagenen told supervisors. “What this represents is an intentional effort to preserve emergency medical care in the Palo Verde Valley.”
Van Wagenen said the hospital’s financial situation worsened after the healthcare district was unable to make a required payment to the state that would have unlocked nearly $10 million in additional funding. With less than a week of operating cash remaining, the city of Blythe stepped in with a one-time $330,000 loan to keep the emergency department open.
Supervisor V. Manuel Perez, whose district includes Blythe, called the county’s action a critical step.
“With our $1 million and the city’s support, it gives us the time to try to figure this out,” Perez said in a press release. Joanna Gonzalez, a board member of the Palo Verde Healthcare District, told Supervisors that county’s financial support provides short-term stability but does not resolve the hospital’s long-term challenges.
Joanna Gonzalez, a board member of the Palo Verde Healthcare District, said the county’s financial support provides short-term stability, but acknowledges it will not resolve the hospital’s long-term challenges.
“But it does provide breathing room and gives us time to continue exploring sustainable, long-term solutions,” said Gonzalez.
County officials said they are working to finalize a management services agreement with the healthcare district and expect to return to the Board of Supervisors in February with next steps.
City News Service contributed to this report.
