Riverside County to Temporarily Take Over Operations at Palo Verde Hospital Amid Bankruptcy

Riverside County is stepping in to temporarily manage operations at Palo Verde Hospital after the Palo Verde Health Care District Board approved a management agreement last night. The transition could begin as early as February 23, pending approval from the bankruptcy court.

Under the agreement, the county will oversee the hospital’s emergency department, clinic, and support services. Riverside University Health System will lead the management effort, appointing interim executives and medical leadership to stabilize operations and ensure continued patient care.

To support the hospital’s emergency department, the county has issued a $1,000,000, five-year loan. The 51-bed facility has faced years of financial difficulties and has operated only emergency and clinical services since May, following its declaration of bankruptcy.

County officials say this temporary arrangement aims to maintain essential healthcare services for the local community while long-term solutions for the hospital’s financial and operational challenges are explored. The collaboration highlights the county’s commitment to sustaining healthcare access despite ongoing financial obstacles.