Blythe hospital secures funding to keep doors open

UPDATE 1/23/2026:

The Board of Supervisors next week will consider approval of a $1 million loan and hands-on assistance from Riverside County agencies to keep the doors to the emergency room open at bankrupt Palo Verde Hospital in Blythe.

STATEMENT FROM PALO VERDE HEALTH DISTRICT:

The Palo Verde Healthcare District Board of Directors wants their employees and the community to know that short-term funding has been secured to allow Palo Verde Hospital to continue operating at its current level of service while longer-term solutions are pursued.

The hospital’s emergency room and ancillary services, as well as the Palo Verde Hospital Community Clinic, are open. With the support of the City of Blythe and the County of Riverside, the District has obtained emergency, short-term funding to provide immediate operational support.

This funding is intended to prevent an abrupt disruption of the hospital’s emergency services and the Community Clinic and to give the Board and its advisors time to continue working with the County and other partners on a more sustainable path forward. 

During this period, the Board, along with its financial, legal, and restructuring consultants, continues to actively evaluate all available options to stabilize operations and identify an appropriate long-term solution. These discussions involve multiple parties and complex factors, including financial, operational, and regulatory considerations.

As a result, the situation remains uncertain, and no single outcome can be guaranteed at this time. We anticipate calling one or more Board of Directors meetings prior to the end of January regarding the County-District Loan Agreement and a Management Agreement.

The Board understands the strain this uncertainty places on hospital employees and the community. We are deeply grateful for the dedication of our staff and the patience of the residents we serve. Our focus remains on maintaining access to care for the community while we work diligently to determine whether a viable long-term solution can be achieved.

We are committed to transparency and will share updates as soon as there is meaningful new information to report.

----------------------------

Update 4 p.m. 1/15/26

BLYTHE, Calif. (KESQ) - Palo Verde Hospital's Board of Directors has postponed a vote accepting a county proposal to keep the hospital open.

The board held a special meeting at 12:30 p.m. Friday but postponed the vote until they receive the county's conditions.

This comes as the Blythe area's hospital runs on limited cash flow. However, city officials say they believe the hospital has enough cash flow to stay open another week.

1/15/2026

BLYTHE, Calif. (KESQ) - Riverside County has released a proposal to keep the Blythe area's only hospital open.

County officials proposed a plan that would assemble a stakeholder “strike force” led by the County to independently stabilize and manage only the Palo Verde Hospital's emergency department for approximately six months, assess current conditions, and make recommendations for next steps. This could begin as soon as feasible.

In the meantime, the county would provide a $1 million loan to the hospital's emergency department until such time as the District agrees to the proposal related to the County-led independent strike force.

Statement from Supervisor Manuel Perez:

“I am thankful for the support of my colleagues to assist the people of the Palo Verde community who desperately need access to emergency medical care.  I am proud of the Board of Supervisors, County Executive Officer Jeff Van Wagenen, and our County teams for their unwavering dedication to meet the safety net needs of our residents.  I look forward to hearing the response from the Palo Verde Healthcare District.”

The county is awaiting feedback from Palo Verde Healthcare District, officials said. If they agree in principle, county officials will be discussing the many details necessary to achieve this outcome.

The hospital serves Blythe and its surrounding areas, and is more than 90 miles from the next nearest hospital in the Coachella Valley.

Palo Verde Hospital has been on the verge of closing since November after months of financial mismanagement. Officials said the hospital has been running on fumes with just an emergency room and radiology department open.

Last week, the Palo Verde Healthcare District board requested $2 million from the county to stay afloat. The hospital bought itself another week after accepting a $330K bridge gap loan from the city of Blythe to cover the hospital's payroll expenses for a week.

The Palo Verde Healthcare District filed for Chapter 9 bankruptcy in September.

County officials encourage Blythe residents to call 9-1-1 regardless of the hospital’s status during emergencies to reach a dispatcher. Pre-hospital care is still available and will remain operational.

Stick with News Channel 3 for continuing coverage.