Catalina Island Hospital Seeks Funds to Remain Open Amid Financial Strain

Catalina Island Health, the only full-time medical provider on the island, avoided shutdown last year after Los Angeles County granted an emergency multimillion-dollar bailout when the hospital had just six days of cash. The facility, which treats roughly 2,500 emergency patients each year, continues to grapple with inflation, insufficient Medi-Cal payments and future Medicaid funding reductions tied to HR1. County initiatives, including the approval of Measure ER and a recent disbursement of Measure B revenues, have supplied short-term cash but cannot sustain operations long-term, leaving the hospital with roughly 45 days of reserves.

CEO Tim Kielpinski reports a modest improvement in finances, though the hospital still operated in the red with about $24 million in revenue against $25.5 million in expenses. Plans for a new, earthquake-compliant building are underway, but the project requires $30 million in private funding to secure a $145-million USDA loan. A recent fundraiser raised $5.1 million, yet an additional $18 million is needed within 18 months to keep the hospital viable.