Palo Verde Hospital Board Approves County Loan, Management Negotiations

The Palo Verde Healthcare District Board of Directors unanimously approved a $1 million loan from Riverside County and authorized negotiations for a management agreement that would place the hospital under county-led oversight for approximately six months.

The votes came during a special meeting Monday night at the Blythe City Council Chambers. The plan aims to ensure continued access to emergency medical care at Palo Verde Hospital, the only hospital serving Blythe and the surrounding eastern Riverside County region.

The agreement still requires approval from the Riverside County Board of Supervisors, which is scheduled to discuss the matter on Tuesday at 9:30 a.m. County officials have said the plan could begin as soon as feasible if approved.

The district already received the $1 million loan last week in anticipation of the agreement being finalized. The loan carries a five-year term at 3% interest with quarterly payments beginning in October 2026.

Palo Verde Hospital has been operating under a fiscal emergency since June 2025 and filed for Chapter 9 bankruptcy on September 30, 2025. According to loan documents, the hospital had approximately two days of cash on hand as of January 15.

According to the healthcare district, the financial crisis stems from multiple factors, including COVID-19 response costs, litigation in 2024, a cyber incident that halted billing for roughly 45 days, and the loss of key finance leadership. 

Under the proposed deal, the county would lead a stakeholder "strike force" to stabilize and manage the emergency department for approximately 180 days while longer-term solutions are evaluated. The hospital's emergency room, ancillary services, and community clinic remain open at this time.