In a statement received by The Daily Independent on Tuesday afternoon, Ridgecrest Regional Hospital released a status update on the funding needed and steps forward to maintain services for our area residents and the Center for ‘China Lake naval weapons.
Below is the unedited statement from the HR Board of Directors:
As Ridgecrest Regional Hospital’s board, leadership and advocates continue to work toward financial strategies that will close cost-of-service gaps, we want to thank the many people in our community who have Contact support and questions about our challenges. Here’s an update on where we are and how we got here:
Paths to resolution:
• HR is working with elected officials and other struggling hospitals to resolve structural inequities in reimbursement for services.
• China Lake Alliance, IWV Economic Development Corp., Ridgecrest Area Association of Realtors and other agencies have written letters of support to elected officials and brought much-needed attention to this critical community challenge. We hope this will prompt other elected officials to help HR navigate the government red tape to collect financial obligations for health services.
• RRH continues to explore options, such as joining or forming a health district, aligning with a larger system, and qualifying for essential services grants, in order to close short- and long-term funding gaps.
Ongoing Challenges:
• Unfunded repairs for magnitude 6.4 and 7.1 earthquakes, as well as unfunded and non-deferred seismic retrofit requirements;
• Inadequate reimbursements from state and federal governments for the provision of services that RRH was legally bound and ethically obligated to provide;
• Shortages and supply chain disruptions;
• The shortage of providers and other qualified health workers throughout the country;
• Geographically remote location of IWV, and the need to provide comprehensive services to an isolated population.
Legacy Challenges:
• When the Navy established a base at China Lake in 1943, it came with government provision and support of services ranging from health care to education, public safety, and infrastructure and quality of life When the civilian population was moved “off station”, there was no tax base to fund these services. More than 75 years later, there is little tax base left to support services. Efforts to recruit compatible sectors have been largely unsuccessful.
• The collapse of private medical groups left the IWV without a clear path to hire providers or services that would allow our residents to access quality healthcare services. HR supported the clinics in order to continue these services in our community. Without HR taking this position, there would be virtually no way to recruit suppliers to the area. Nearly 85 percent of physician offices in the United States are owned by hospitals, as unsubsidized operations are unsustainable for most communities. This is why many of our surrounding communities have chosen to close services such as obstetrics and surgery. Even without subsidies, sustainability is impossible without adequate reimbursement for services.
Our future:
What if the community loses local health services? What if China Lake and other large employers lose the hospital, one of the biggest incentives to attract and retain a quality workforce? We now face a crucial moment, where we have the opportunity to make solving these problems a priority and create a positive future for this community.
Ridgecrest Regional Hospital Board of Directors
