L.A. Care Commits a $2 Million Lifeline to Catalina Island Health

The Only Hospital on the Island Was Facing Closure This Summer

LOS ANGELES, April 10, 2024 /PRNewswire/ -- Catalina Island has had a full-service hospital since 1960, but the CEO of Catalina Island Health reported in January that the hospital was running out of money and might not be able to stay open past June of this year. Catalina Island Health is the only hospital and primary care clinic on the island.  Of the 4,200 residents on the island, 733 are members of L.A. Care Health Plan, the largest health plan in Los Angeles County. At the urging of the health plan's CEO, the L.A. Care Board of Governors unanimously approved a $2 million grant to help sustain the hospital until the end of the year.

"L.A. Care is deeply committed to supporting the health care safety net that serves our members and all of Los Angeles County, said John Baackes, L.A. Care CEO. "Catalina needs a hospital and primary care clinic to keep its community healthy. We know this grant is just lifeline and not a long-term solution, but it will give Catalina Island Health the time it needs to find a permanent solution."

In addition to the grant, L.A. Care is boosting the hospital's Medi-Cal reimbursement rates and urging other health plans to step up and do the same. This will give Catalina Island Health the time needed to make an affiliation arrangement with a larger organization, so it can continue to provide services to this isolated population.

"On behalf of the residents of Avalon and the entire Catalina Island Community, I would like to thank John Baackes and the L.A. Care Board of Governors for this $2 million grant to keep Catalina Island Health open during these financially trying times," said Jason Paret, CEO, Catalina Island Health. "Their foresight to make this investment to help us remain solvent avoids the future reality that would result in the County of Los Angeles spending tens of millions of dollars to provide limited emergency medical care for our residents and visitors."

Despite the isolation of being on an island, because it's in Los Angeles County, the state considers Catalina Island Health an urban facility. This makes it ineligible for some state funding offered to rural facilities.

"I want to thank L.A. Care and its Board of Governors for stepping up and helping to ensure that the doors to Catalina Island Heath remain open so that quality health care remains accessible for Island residents and tourists alike," said California Assemblymember Josh Lowenthal, who represents Catalina Island. "As I have been all along, I remain committed to marshalling all available resources to raise awareness of and to overcome the unique challenges facing the island."

Last month, with the support and assistance of Assemblymember Lowenthal, Catalina Island Health hosted a meeting at Cal State Long Beach to lay out what the loss of medical care on Catalina Island would mean for residents there and L.A. County. L.A. Care CEO John Baackes joined the meeting, along with representatives from the offices of Assemblymember Lowenthal, State Senators Lena Gonzalez and Ben Allen, Supervisor Janice Hahn, and Congressman Robert Garcia. They heard from representatives of Catalina Island Health, the L.A. County Fire Department, the City of Avalon, and local business leaders. The hospital closure's impact goes beyond just the Catalina Island community.

"This small hospital not only provides essential healthcare for island residents, it is the only source of emergency care for the over one million tourists who visit Catalina every year," said Los Angeles County Supervisor Janice Hahn, who represents Catalina Island. "It would be catastrophic if this hospital were to close and would have ripple effects across our emergency response system with every emergency patient needing to be flown via helicopter to the mainland for care. This grant keeps this crisis at bay, and I am committed to working on a long-term solution to keep this hospital operating in the future."

The $2 million grant is a part of L.A. Care's $205 million Elevating the Safety Net, an initiative launched in 2018 to address a growing physician shortage in Los Angeles County. It includes multiple programs and grants to recruit and retain highly qualified primary care physicians in the county safety net. Elevating the Safety Net is part of L.A. Care's commitment to advancing health equity for members and their communities, giving everyone the fair and just opportunity to be as healthy as possible.

About L.A. Care Health Plan
L.A. Care Health Plan is the largest health plan in Los Angeles County serving more than one of every four Angelenos. It is also the largest publicly operated plan in the country. L.A. Care offers four health coverage plans including Medi-Cal, L.A. Care Covered™, L.A. Care Medicare Plus and the PASC-SEIU Homecare Workers Health Care Plan, all dedicated to being accountable and responsive to members. As a public entity, L.A. Care's mission is to provide access to quality health care for L.A. County's low-income communities, and to support the safety net required to achieve that purpose. L.A. Care prioritizes quality, access and inclusion, elevating health care for all of L.A. County. For more information, follow us on X, Facebook, LinkedIn and Instagram.

About Catalina Island Health
As Avalon's only hospital, Catalina Island Health serves the medical needs of Santa Catalina Island's 4,000 residents as well as the more than one million visitors who travel to Catalina each year.

SOURCE L.A. Care Health Plan