Rural, standalone hospitals face some of the biggest financial hurdles within the hospital sector, and three such hospitals in California are approaching future solvency in different ways, according to a California Healthline report.
Victor Valley Community Hospital
The Victorville-based hospital filed for bankruptcy in 2010, but it finally found a new strategy. Victor Valley officials agreed to sell the organization to KPC Group, a business group based in Riverside, Calif., for $26.7 million. KPC will turn the hospital into a for-profit entity and invest $25 million over the next five years.
Colorado River Medical Center
Based in Needles, this critical access hospital is currently owned by the city but will soon fall under the ownership of Community Healthcare Partner, a local entity that plans to turn the public hospital into a private, non-profit venture. Current CEO Jon Freeberg said in the report that he assumes the investors "can bring doctors in here, and the doctors can get enough patients so they can get enough money so they can make a return on their investment." However, CRMC will still face a payor mix of 70 percent Medicare and Medicaid.
Hi-Desert Medical Center
The public hospital, based in Joshua Tree, recently announced it would hire consultants to help with its financial situation. It will also form "strategic partnerships" in the region, which may include service line affiliations.
Victor Valley Community Hospital
The Victorville-based hospital filed for bankruptcy in 2010, but it finally found a new strategy. Victor Valley officials agreed to sell the organization to KPC Group, a business group based in Riverside, Calif., for $26.7 million. KPC will turn the hospital into a for-profit entity and invest $25 million over the next five years.
Colorado River Medical Center
Based in Needles, this critical access hospital is currently owned by the city but will soon fall under the ownership of Community Healthcare Partner, a local entity that plans to turn the public hospital into a private, non-profit venture. Current CEO Jon Freeberg said in the report that he assumes the investors "can bring doctors in here, and the doctors can get enough patients so they can get enough money so they can make a return on their investment." However, CRMC will still face a payor mix of 70 percent Medicare and Medicaid.
Hi-Desert Medical Center
The public hospital, based in Joshua Tree, recently announced it would hire consultants to help with its financial situation. It will also form "strategic partnerships" in the region, which may include service line affiliations.
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