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Board approves $500,000 loan to Southern Inyo Healthcare District; hospital leader says bankruptcy resolution rescinded
Summary
The board approved loan documents for a $500,000 loan to Southern Inyo Healthcare District. Dr. Flanagan told supervisors the hospital has rescinded a prior bankruptcy authorization, paid down about $1 million in arrears and expects an insurance supplemental payment that will help cash flow into December.
Danelle Carrington, assistant county administrative officer, presented a proposed loan of $500,000 to Southern Inyo Healthcare District and introduced Dr. Flanagan and Amy Shepherd to answer questions. Dr. Flanagan told the board the hospital’s board rescinded a previous resolution that would have authorized filing for bankruptcy if unexpected fiscal events occurred.
"We have recently held a board meeting in which, we were able to, without hesitation, rescind the resolution that had authorized me should anything further fiscally unexpected occur to file petition for bankruptcy," Dr. Flanagan said, adding the hospital has reduced payables by approximately $1 million and that staff furloughs and operational adjustments had preserved services.
Flanagan said the hospital estimates funding will cover operations through mid‑December; he also reported the hospital expects a supplemental insurance payment (approximately $283,000 of a $680,000 payment) that will be deposited shortly and will improve cash flow. Board members asked about discussions with LADWP; Flanagan said he had met once with LADWP leadership and was waiting for follow‑up.
Board members voted to approve the loan documents; the motion carried.
