IE Business Daily Business news for the Inland Empire.
Blythe is fighting to keep its only hospital open.
The city in eastern Riverside County (pop. 18,000) is asking Riverside County, the state of California for help with its effort to save Palo Verde Hospital, according to city officials.
The 51-bed acute care hospital is suffering serious financial troubles, most of which stem from its not being reimbursed for treatments covered by Medicare and Med-Cal, said Vice Mayor Johnny Rodriguez.
Palo Verde was also not compensated by the California Department of Corrections and Rehabilitation, which provides medical treatment for the 2,000 inmate at Ironwood State Prison.
Ironwood is about 20 miles outside of Blythe and is the largest employer in the region, with approximately 1,000 employees.
City officials began looking into Palo Verde’s financial problems early this year, amid rumors that the 88-year-old institution was in serious trouble and might be shut down.
“I went to several (hospital) board meetings, and they were pretty contentious,” Rodriguez said. “A lot of yelling back and forth, and a lot of accusations. I didn’t know which side to believe.”
Palo Verde officials admitted that the hospital was experiencing financial problems, but said it was not in danger of closing, which it has not.
“They were delinquent in their financial reporting, according to their own bylaws,” Rodriguez said. “They took out an $8 million loan, but we weren’t sure how the money was being used.”
To receive their reimbursements, Palo Verde was required to submit audited cost reports to the three health care providers. However, because of a computer problem that lasted about two and half months, hospital officials were not able to submit properly audited reports on time.
As a result, Palo Verde was not being compensated for approximately $940,000 worth of treatments per month, Rodriguez said.
In addition, Provident Bank reduced Palo Verde’s $3 million of credit down to about $400,000. That forced hospital officials to lay off most of their staff, and shut down the emergency room and a clinic.
“They are no longer admitting patients, unless they’re going to use one of the two facilities that are left,” Rodriguez said. “Anyone who was in the hospital has been transferred out.”
Losing Palo Verde would be disastrous for Blythe and much of the High Desert, according to Rodriguez.
“We’re an isolated community,” said Rodriguez, who is serving his second council term. “The closest hospital is 15 minutes away, in Arizona (La Paz Regional Hospital in Parker) but a lot of California medical insurance is not covered there.
“Palo Verde is the only trauma center we have.”
Rodriguez and council member Sam Burton make up an ad hoc committee formed by Mayor Joseph DeConinck to coordinate Blythe’s efforts to help Palo Verde regain its financial footing and remain open.
Both council members will attend meetings of the Palo Verde Health Care District Board and “demand transparency” from that five-member panel, according to a statement released July 30 by the city.
“The people of Blythe deserve access to reliable, high-quality emergency medical care,” DeConinck said in the statement. “Our city is committed to doing everything in our power to protect that access, working hand-in-hand with our partners at the county, state and federal levels.”
Blythe, which is surrounded by unincorporated territory populated by 3,000 people, has also asked for a municipal service review from the Riverside Local Agency Formation Commission.
A regulatory agency formed by the state, LAFCO has countywide jurisdiction and is responsible for setting city and special district boundaries. All of California’s 58 counties have a LAFCO, according to LAFCO Riverside County’s website.
LAFCO Riverside oversees the Palo Verde Health Care District, one of three health care districts in Riverside County.
The service review will focus on fixing the hospital’s financial travails. It is expected to be presented at LAFCO’s Sept. 25 board meeting, said Gary Thompson, LAFCO Riverside County’s executive officer.
“We’re looking at all of the options, what they can and can’t do,” Thompson said in a telephone interview. “The goal is to keep the hospital open and functioning properly. There are a lot of things we’re looking at.”
Thompson declined to comment further on the service review because it’s still underway, but said there is a sense of urgency associated with it because it involves the only hospital in a remote part of the county.
“It’s important because it’s so isolated up there,” Thompson said. “It’s also an unusual situation because they’ve suspended services. They can’t do surgeries. That’s unusual for a hospital.”
In June, the Palo Verde Healthcare District Board of Directors adopted a 60-day emergency reorganization plan. That report recommends that Palo Verde reconfigure its critical care and emergency services so those departments are not interrupted.
The hospital will also streamline financial control and vendor contracts, put into place flexible staffing models and cross-training, and speed up talks with state and regional officials to secure emergency funding.
“This 60-day roadmap is our best path forward,” said Carmela Garnica, board president, in a statement. “It balances all of our urgent needs to preserve lifesaving services, and it demonstrates to the state of California that we have a clear (financial) strategy in place.”
Palo Verde has also received help from Sacramento.
State Sen. Steve Padilla (D-San Diego) recently secured $4 million in aid to help prevent Palo Verde and El Centro Regional Medical Center from closing. In a statement, Padilla noted that both facilities are often the only source of healthcare in their communities.
“Palo Verde Hospital is the only acute-care facility within a 100-mile radius, approximately a two-hour drive,” Padilla said in a statement. “That’s too far away in case of an emergency. It is critical that the state step in to ensure all Californians have access to life-saving care.”
Board members approved the filing of a Chapter 9 bankruptcy petition, but strictly as a precaution. Such a filing would be “a last resort,” said Vanessa Burke, a financial consultant hired by the board, according to a published report.
The board is expected to adopt its final budget Aug, 27.
