County to take over bankrupt Blythe hospital, keeping ER open

Palo Verde Hospital in Blythe. Palo Verde Hospital in Blythe.
Palo Verde Hospital in Blythe. | Photo courtesy of Palo Verde Hospital/Facebook

The Board of Directors for a fiscally troubled hospital in Blythe approved an agreement Thursday that authorizes a Riverside County “strike team” to help keep the emergency room and other departments open.

Officials from the Riverside University Health System will guide a 180-day stabilization period at Palo Verde Hospital beginning Monday, with strike team members on-site at the hospital to assess and manage current conditions, according to the agreement. The RUHS team will focus on “patient safety, staffing stability and Emergency Department and clinic processes.”

Palo Verde Hospital is currently in Chapter 9 bankruptcy proceedings and risks closure, prompting county officials last month to approve a $1 million emergency loan and now provide personnel to keep the facility open.

Without access to emergency care at the hospital in Blythe, the nearly 20,000 residents in the city and nearby areas would lose access to “timely treatment for life-threatening conditions where minutes matter,” according to a county statement. The closest hospital with an emergency room is more than 70 miles away.

“This has always been about the people of Blythe,” District 4 county Supervisor V. Manuel Perez said in a statement following the Palo Verde Healthcare District board’s 3-0 vote to approve the agreement.

“Access to care in this region is essential, which is why my colleagues on the Board and I voted to support this hospital,” Perez said. “We brought leaders together because the community deserves stability and action. This agreement allows us to protect emergency services while we study the best path forward for the hospital and the families who depend on it.”

Under the agreement:

  • the Palo Verde Healthcare District remains the licensed hospital operator and retains all responsibilities to ensure compliance with government regulations, licensing requirements and the federal Emergency Medical Treatment and Labor Act;
  • hospital employees remain employees of PVHD, not the county;
  • ownership of the hospital does not change; and
  • Riverside County gets temporary authority to make operational decisions for the hospital’s Emergency Department, clinic and directly supporting departments for the defined 180-day period.

Over the past several weeks, officials from the county Executive Office, Emergency Management Department, County Counsel and the Riverside University Health System worked with PVHD to develop “a structured, time-limited plan designed to protect emergency medical services,” according to the county. “The agreement establishes an operations and management model designed to protect public health and safety while preserving PVHD’s role as the licensed hospital operator.”

The 180-day period aimed at stabilizing hospital operations establishes a defined window for the county team to provide hands-on operational support and also do an assessment of daily work procedures and hospital management. The county team will compile recommendations for PVHD officials to consider for future implementation.

While the hospital’s current nonmedical administrators will support the transition and assist the county team “as needed,” RUHS leadership will have decision-making authority during the stabilization period.

“Our team is energized and ready to hit the ground running,” RUHS CEO Jennifer Cruikshank said in a statement. “We aren’t just here to manage a transition; we are here to support the incredible frontline staff and ensure that every resident has access to the high-quality, stable care they deserve. We are diving in on day one with a clear focus on operational excellence and transparency.”

On March 3 the county Board of Supervisors has scheduled a review of options for filling current PVHD Board vacancies.

The county’s $1 million loan, which supervisors OK’d Jan. 26, includes a five-year term at 3% interest, restricted use of funds held in a county-controlled bank account, according to a PVHD staff report.

In a Jan. 14 statement, the county Executive Office noted the likelihood of the loss of emergency services at the hospital after the California Department of Healthcare Services canceled a planned “voluntary rate range intergovernmental transfer” for $9.9 million in credit for remaining operations.

DHCS did not respond immediately to a request for comment.

In January DHCS spokesman Anthony Cava did “not have updates” about the $9.9 million credit cancelation but said the agency “has been in continuous discussions with local stakeholders and will share updates as they occur. Our priority is to ensure Medi-Cal members maintain uninterrupted access to essential health services throughout any transition.”

The Blythe City Council approved a $330,000 loan Jan. 9, which kept the hospital’s emergency room running until the end of the month, officials said.

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