On Wednesday, the City of Riverside Medical Center announced that it had received a $1.1 billion in targeted debt financing, which will help it expand its medical network and invest in clinical care for patients, its director of health services said.
“This investment in Riverside will help us expand our services to more of our patients and help them find the best medical care in the region,” Dr. James Hays said in a statement.
“It’s an investment in our future.”
Riverside Health and its health care system have been under severe financial strain, thanks to the state’s new Medicaid expansion, and a projected $400 million reduction in revenue.
The hospital is already dealing with rising medical costs from the opioid epidemic, and the city is expecting $1 billion to $1 million per year in revenue from the $4 billion Medicaid expansion.
It is also facing a $8 billion deficit, which is expected to be addressed with additional funds from the state.
“We are committed to doing everything in our power to keep our staff in the hospital, provide high-quality care to our patients, and invest the money needed to grow and improve our hospitals,” Hays added.
Riverside’s budget has been a hot topic in California in recent weeks, with Gov.
Jerry Brown’s office seeking to reduce state spending in the coming budget.
In the past few weeks, Riverside Health’s board has received hundreds of thousands of dollars from the governor’s office and the California Association of Counties to help with the hospital’s financial troubles.
Riverside Health is also a member of the California Medical Association, which has taken action to protect the interests of patients and to make it easier for hospitals to raise revenue.
Riverside Medical Board Chairman David O’Neill, a Democrat, was at the press conference Wednesday, and said he expects the board to pass the new funding soon.
“The hospital’s health care needs are growing, but the state has not been supportive enough, and we are hoping that we can be part of a solution that will help the hospital get back on its feet and begin to expand,” O’Neil said.