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Northern Inyo Hospital leaders warn of multimillion-dollar shortfall, bond risks and plan to grow services
Summary
Northern Inyo Healthcare District officials told the Inyo County Board of Supervisors they face a projected operating loss this year, broken bond covenants and a problematic capital-appreciation general‑obligation bond largely borne by taxpayers; leaders outlined short‑term options and a longer-term growth and facility plan.
Northern Inyo Healthcare District leaders told the Inyo County Board of Supervisors on Feb. 17 that the hospital is running large operating deficits, faces broken bond covenants and must pursue both short‑term and long‑term steps to avoid bondholder intervention.
"As of December, halfway through the year, we've lost $3,200,000 and we're projecting about $4,700,000 loss," Andrea Mossman, the district's chief financial officer, said during the presentation. Mossman said the hospital also expects lower supplemental funding than budgeted after a recent cut to intergovernmental transfer (IGT) dollars.
The presenters said the district is failing to meet two critical bond covenants: days cash on hand (currently about 65 days vs. a 75‑day bond minimum) and a debt‑service coverage ratio well below the 1.1 requirement (reported at negative 0.7). Those shortfalls increase the risk that revenue bondholders could demand remedies, up to and including taking control of…
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