The Palo Verde Healthcare District board of directors held a special meeting Wednesday, Nov. 19, where they heard a number of proposals from health care companies looking to help ensure services at the hospital.
The 51-bed Palo Verde Hospital is on the brink of closure as a result of years of financial instability, which have led to reduced services at the medical facility and a recent bankruptcy filing. Since May, the facility has only been operating its emergency and clinical services.
Four proposals were heard during the board meeting, which include providing interventional services through a third party, building a new hospital and transferring the current facility to a new provider. Board members did not discuss each item in full detail, opting to do so at a study session at a later time, nor did they make any decisions based on what they heard. Instead, they directed staff to evaluate the options and continue to seek additional proposals for consideration.
Additionally, longstanding board member Rosie Rowell announced her resignation during the meeting. She said she would be stepping down from the position at the end of the month.
More: Blythe’s only hospital is on the brink of closure. Residents are fighting to save it
Proposals suggest building new hospital, selling facility
Directors heard proposals from a number of third parties interested in providing a path forward to assist with the hospital’s survival and longevity. Board documents state that the unsolicited proposals provide a look at a variety of options the hospital can consider as it moves forward with its chapter 9 bankruptcy case. Under this type of bankruptcy, the district must develop and submit a plan of adjustment to the courts for consideration.
A representative from Rural Medical Partners (RMP), an interventional services provider based in Las Vegas, explained that the company works with the hospital to start a sustainable fulltime clinic with an advanced practice provider, office manager and ECHO tech. RMP pays for a portion of the APP and fully pays for the office manager and ECHO tech, while the hospital is responsible for the purchase of equipment/materials to start cases.
RMP starts programs with interventional cardiology, peripheral vascular disease and electrophysiology. Once the programs are established, other interventional specialties can be added.
Tala Health, an AI-driven healthcare technology company, laid out a three-phase process to help Palo Verde Hospital. That includes stabilization (Tala Health’s leadership team is on-site, while it retains <95% of the hospital staff and reduces claim denials and premium labor costs), transformation (upgrade technology platforms, optimize staffing models and monitor programs) and growth (expand services).
Ambassador Care proposed an ambitious plan which would include retiring the district’s $15 million debt, operating the hospital’s emergency department and clinic and reopening inpatient services in April, making short-term capital improvements, addressing equipment needs, bringing on additional staff, developing a new hospital facility, breaking ground within 18 months, opening a new hospital within 36 months and developing a Rural Centric Care Organization plan. The company states the plan enables rural hospitals to partner with health plans and redirect care from the city back to the hospital and medical staff. Ambassador Care states the plan can lead to a budget of at least $100 million within two years.
The proposal that got the most chatter was a purchase and transition plan agreement from Legacy MD Medical Group, a group from El Centro. For a period of up to five years, Legacy would have the right to manage and operate the hospital subject to the hospital board’s oversight, working together to develop governance protocols. If the plan were to go through, the company would coordinate an investment of $3.5 million into the hospital, to match anticipated governmental contributions in early 2027 and to restructure operations.
Legacy also proposed improvements to emergency, ICU, med-surg, outpatient and swing bed services; telehealth, pharmacy and specialty service lines; staffing optimization and non-core outsourcing; and those related to administrative work.
However, a number of community members were concerned with the proposal. In public comments, a few residents referenced a meeting between hospital CEO Sandra Anaya and representatives from Legacy MD Medical Group, which took place over the summer. Members of the public allege they discussed a possible sale of the hospital, without the board’s knowledge.
Board member Sandra Hudson also cited the recorded meeting and wanted to play it for attendees so that they could hear Anaya’s comments about the board and community.
“We have a big problem if she’s negotiating without being authorized to,” Hudson said.
Anaya did not comment on the matter, but the district’s counsel said the meeting with the Legacy representatives was unsolicited and that the medical director approached the hospital at the urging of an elected representative (their name was not clear during the boarding meeting livestream).
Board member announces resignation
PVHD board member Rowell announced she will be resigning from her position, effective Nov. 30.
Rowell cited family concerns that she needs to attend to as reason for stepping down. She added that it has “been a real pleasure” serving on the board for six years.
Residents of Blythe have been collecting signatures for a recall effort to remove three PVHD board members, which include Board President Carmela F. Garnica, Trina Sartin (who is also the hospital chief nursing officer/chief operations officer) and Rowell.
Though she is stepping away from the board, Rowell said she hopes to help the hospital in other ways, and encourages the community to come together to make the facility “the wonderful little hospital that this community deserves.”
The board did not discuss next steps to fill Rowell’s vacancy.
Ema Sasic covers entertainment and health in the Coachella Valley. Reach her at ema.sasic@desertsun.com or on Twitter @ema_sasic.
This article originally appeared on Palm Springs Desert Sun: Palo Verde board member resigns, directors hear hospital proposals
Reporting by Ema Sasic, Palm Springs Desert Sun / Palm Springs Desert Sun
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