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Catalina Island Health outlines funding, seismic extension and new-hospital site options

City Council of Avalon · January 21, 2026
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Summary

Tim Kielpinski, CEO of Catalina Island Health, briefed the council on hospital funding streams (Measure C/H, Measure B, IGT), a roughly $1M IGT timing transfer, the organization's hospitalist model and bed strategy, and site options that could move a new hospital opening to 2030'31 if the triangle site is used instead of Quail.

Tim Kielpinski, CEO of Catalina Island Health, delivered the hospital's bi-monthly update and walked the council through four principal funding sources supporting current operations and capital planning: Measure C sales-tax revenue, Measure H passenger-tax reimbursements set aside for construction, Measure B county property-tax support for EMS/trauma, and intergovernmental transfers (IGT).

"Measure C was the sales tax 20 years ago, and Catalina Island Health has been getting that all along. It's about $750,000 a year," Kielpinski said, and later explained that IGT timing produced an advance of roughly $1 million that will be reconciled with the city over the coming months.

Kielpinski described current hospital operations: the facility is licensed for 12 beds but is internally capped at nine to avoid staffing costs (opening additional acute beds would require hiring multiple full-time nurses). He also said the hospital submitted an extension for seismic compliance that would push compliance to December 2032 for qualifying rural or critical-access facilities.

On capital planning, Kielpinski said the hospital is evaluating an alternate "triangle" site, which preliminary analysis shows could support a faster construction timetable with an opening targeted in late 2030; staying at the Quail site could push opening into 2032 at higher cost. He emphasized the environmental review and planning commission processes that would address noise, traffic and impacts to nearby uses before any final site is selected.

Council members questioned impacts to neighbors and long-term operations, and Kielpinski said those issues would be handled through required environmental review and public hearings. He also reiterated that hospitalists and operational changes have improved local continuity of care and local inpatient capacity.