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Board agrees to draft loan plan as Southern Inyo Healthcare warns of short‑term cash crisis
Summary
Southern Inyo Healthcare District officials told the Board of Supervisors the hospital faces roughly $2 million in overdue payables and asked the county for up to $500,000 in immediate support. The board directed staff to return with a draft loan document and said it would seek terms and conditions at a future meeting.
Southern Inyo Healthcare District told the Inyo County Board of Supervisors on Oct. 7 that the district faces an immediate cash shortage and asked the county to consider a near‑term loan to keep essential services running.
Dr. Kevin Flanagan, chief executive officer of Southern Inyo Healthcare District, told the board that “my accounts payable, I have about $2,000,000 in overdue invoices” and that the district typically carries only “between 1 and 12 to 13 days of cash available.” He said the district expects larger state supplemental payments beginning in January 2026 that would make the hospital financially viable in the longer term but that it needs a bridge to reach that point.
The district said it recently negotiated payment arrangements with several vendors and that staff and some clinicians had reduced work hours and accepted temporary pay cuts to lower monthly payroll costs by roughly $150,000 to $200,000. Flanagan said those measures have pushed an earlier projected out‑of‑money date from late…
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