The Palo Verde Healthcare District Board of Directors and the Riverside County Board of Supervisors are set to ratify a $3.45 million loan from the county to the district next week to support continued hospital operations.
According to a statement from the county, the proceeds from the loan have already been used to pay the California Department of Health Care Services (DHCS) for the hospital’s participation in the Medi-Cal Intergovernmental Transfer (IGT) Voluntary Rate Range Program (VRRP).
“These funds are critical to stabilize the hospital’s emergency department, clinic and supporting departments,” the county said in a statement. “As a result of the County’s action, the Palo Verde Healthcare District has already received approximately $8.9 million in program funds, with the remaining expected in the coming days.”
The PVHD board previously attempted to pay for its participation in the program through a private $4 million loan the district was able to secure last year.
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The state disallowed the payment earlier this year, putting the hospital at imminent risk of closure. However, with a $330,000 bridge loan from the city of Blythe and a $1 million loan from the county, the hospital was able to keep the doors of its emergency department and community clinic open.
If both the district and the supervisors ratify the additional loan funding, it will be added to the principle of the county’s existing loan to the district, bringing the total to $4.45 million. According to the terms of the loan document, PVHD will start quarterly payments of roughly $240,000 next January. The final payment is set to be made by October 1, 2031.
“This is one step closer [to] ensuring the Palo Verde Hospital has the leadership and ultimately, health care provisions it deserves,” Supervisor V. Manuel Perez said in a statement.
PVHD has a special meeting set for Monday, March 3. The agenda, once posted, can be accessed here on the hospital’s website. The next regularly scheduled supervisors meeting is set for March 3. The agenda for that meeting can be found here.
Supervisors are also expected to ratify the management services agreement approved last week by the PVHD board, discuss options for filling two vacancies on the PVHD board and the hiring of special counsel for issues arising from the hospital district’s bankruptcy proceedings.
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