Blythe’s only health care facility with an emergency room has accepted an emergency loan from the city to prevent closure, officials said Monday.
The Blythe City Council on Friday evening approved a $330,000 “bridge loan” that kept Palo Verde Hospital open, staving off a potential closure at midnight Saturday.
As a condition of the loan, hospital administrators agreed to contract with Riverside County or a county-approved management team to assume the facility’s day-to-day management and operation, Interim City Manager Mallory said. The intention of the loan “is to provide immediate operational oversight and stability” while officials look for solutions that lead to long-term financial sustainability.
“We are determined to provide a future pathway for the hospital’s operations,” Crecelius said in a statement Friday prior to the council meeting. “However, we ask for urgent action from the Governor’s Office. This is not a request for new funding; it is a plea to release funds the District has already contributed. Palo Verde Hospital is critical for this region, and we cannot afford to lose it.”
In December, the hospital paid its required share into the state’s Medi-Cal Voluntary Rate Range Program, expecting to get $9.9 million back via this program to support patient care and daily operations, according to the city. The hospital
Hospital administrators used a short-term working capital loan for its required intergovernmental transfer, but the state has not yet determined if the loan is acceptable under the program rules, Blythe officials said. As a result, the hospital has not received the expected funding and has fewer than four days of cash remaining.
“This is a public health emergency that is happening in rural communities nationwide,” Crecelius said. “Without immediate state assistance, our community will lose its only hospital overnight.”
Newsom’s office and county officials did not respond immediately to requests for comment.
If the hospital shuts down, over 17,000 Blythe residents will be left without local access to emergency care, city officials reported. Patients who have PPO health insurance coverage would be forced to travel 50 miles to La Paz Regional Hospital in Arizona, and people with HMO coverage would have to travel 100 miles to John F. Kennedy Memorial Hospital in Indio or other Coachella Valley health care facilities.
City officials are concerned the closure will impact emergency response times, public safety and health equity for the community.
The hospital’s financial crisis surfaced publicly in July “with little notice of this significant closure,” according to city officials.
Additional information on the hospital is available on the city’s website.
