Editor’s note: This story has been updated with comment from the Palo Verde Healthcare District.
The Palo Verde Healthcare District (PVHD) Sunday accepted the terms of an emergency $330,000 bridge loan from the city of Blythe, according to a Monday press release from the city, allowing hospital operations to continue through at least Friday.
“As a condition of the loan, the district agreed to contract with Riverside County or a Riverside County-approved management team to assume the day-to-day management and operation of Palo Verde Hospital,” according to the city’s press release. “This is intended to provide immediate operational oversight and stability while longer-term solutions are pursued.”
Interim City Manager Mallory Crecelius said in an email to The Riverside Record that the qualifications, experience, financial capacity and expertise of PVHD were of “particular concern” to the city.
According to the terms of the loan agreement, the money can only be used for expenses related to the continuity of services at the hospital. Furthermore, the loan agreement stipulated that the district contract with the county or a county-approved management team within two weeks — or as soon as the county was able — and fill the two board vacancies as quickly as possible.
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Interest will be assessed at a rate of 3% per annum and will start accruing on July 1, with the first of eight equal payments of $42,654.32 due October 1. The final payment on the loan is expected no later than 5 p.m. July 1, 2028, according to the agreement.
In an interview with The Record, Riverside County Executive Officer Jeff Van Wagenen said the county was aware that an agreement had been reached, but was still working through the terms to get a better understanding.
“The county is not a party to the agreement between the city and the district,” he said. “In terms of next steps for the district or the hospital, that remains an open question.”
PVHD said in a Tuesday news release that the loan would prevent an immediate disruption of services while the board continued its “urgent work to evaluate and pursue longer-term solutions.”
“The board’s focus remains on identifying a viable path to secure the funding necessary to sustain hospital operations well into the future,” the statement continued. “No final decisions have been made, and the board will continue to consider all available options.”
The board has a special meeting set for 6 p.m. January 14 at Blythe City Hall. An agenda for that meeting can be accessed here on the hospital’s website.
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The county would have to commit to a $500,000 to $1 million monthly subsidy if it decides to reopen inpatient care. There is no local market for care other than emergency care due to the fact that virtually every resident of Blythe is enrolled in an HMO and is referred and admitted 100 to 150 miles west. The county would have to invest upwards of $25 to 50 million to develop a local multi specialty clinic or provider network to capture the outbound traffic, centralize care locally and admit to a at least a partially remodeled hospital. A two year planning and design effort of $10 million would be required to build a new hospital facility at a cost of $50 million.
The local medical market of over $100M annually spent on care can justify all of this but tens of millions of dollars will be needed first to achieve this rural centric care model in Blythe.
Dr John Raffetto, Chaiman
Rural Centric Care America
AmbassadorCare.com