Palo Verde board approves Riverside County hospital management plan

Riverside County will soon take temporary control of Blythe’s troubled hospital after the Palo Verde Healthcare District approved a management agreement on Thursday, Feb. 19.

The current three PVHD board members unanimously approved the plan, which could begin as early as Monday, Feb. 23. Because PVHD is currently in Chapter 9 bankruptcy, it must also seek court approval for the management plan.

Last month, Riverside County and Palo Verde Healthcare District voted to move ahead with next steps for the county or an approved company to take over operations at Blythe’s Palo Verde Hospital emergency room. The plan consists of implementing a stakeholder “strike force” to independently stabilize and manage Palo Verde Hospital’s emergency department for approximately six months, beginning as soon as feasible, to maintain emergency medical services, assess current conditions and develop recommendations for next steps.

While details were being negotiated, Riverside County provided a $1 million loan to the emergency department. The loan includes a five-year term at 3% interest, restricted use of funds and a separate, county-controlled account.

The management plan comes at a time when Palo Verde Hospital faces few options to remain open. The 51-bed medical facility has experienced years of financial instability that have led to reduced services and a recent bankruptcy filing. Since May, the facility has only been operating its emergency and clinical services.

“Tonight … is about stabilizing care and protecting lives,” County Executive Officer Jeff Van Wagenen said during Thursday’s board meeting.

Riverside County plan for Blythe hospital

Under the management plan, the county will assume day-to-day operational control of the emergency department, clinic and related support services, such as lab, radiology and pharmacy services. However, PVHD retains ownership of the hospital and remains the licensed operator responsible for regulatory compliance, according to documents.

The plan will be led by the Riverside University Health System team, who will provide management services, clinical services, hospital leadership, staffing support and other related operational assistance to stabilize hospital operations. The county will appoint a temporary chief executive officer, chief financial officer, emergency department medical director and other interim medical staff and emergency department leadership, which are deemed “necessary and essential to ensure patient safety, regulatory compliance and uninterrupted hospital operations,” according to the agreement document.

The district’s current non-medical executive officers — including CEO Sandra Anaya, interim CFO Michael Rose and Chief Nursing Officer/Chief Operating Officer Trina Sartin (who is also a board member) — will assist during the transition, but the county states they will have no operational authority over the strike team or other advisors. Additionally, their continued employment will be subject to county discretion, and if they are dismissed, the county will provide no less than 45 days of written notice.

Documents state that the county can terminate the management agreement under several circumstances, including if funding lapses or if patient safety, licensure, or liability risks become unacceptable. Upon expiration or termination of the contract, the parties will implement a structured transition returning full operational control to the district, with a short transition period to ensure continuity of care.

“Our team is energized and ready to hit the ground running,” Jennifer Cruikshank, CEO of RUHS-Medical Center and clinics, 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.”

Board members had few comments about the management agreement, but they expressed their gratitude for officials’ support during a tumultuous 18 months.

Had the board not approved the plan, Van Wagenen laid out a few dire situations that would have awaited the community. The hospital would likely not have enough money to last beyond the month, leading to imminent closure. Vendors who have not been paid in recent months have also been “fed up,” he said. One vendor threatened to repossess a CT scanner, which Van Wagenen said “if you don’t have a CT scanner, you don’t have an emergency department.” But because of the county’s existing relationship with that vendor, that has stopped them from taking their property.

The county may also be able to secure funding through California’s Medi-Cal Intergovernmental Transfer program. PVHD attempted to submit $3.4 million via a loan to participate in the program, which would have returned $9.9 million to the hospital, but the state rejected the district’s request. Van Wagenen said county officials have been having discussions with the California Department of Health Care Services to “keep that opportunity still alive.”

Ema Sasic covers entertainment and health for the Coachella Valley. Reach her at [email protected] or on Twitter @ema_sasic.

link