Year-end update from Ridgecrest Regional Hospital

Short-term fixes have allowed RRH to navigate fiscal challenges and uncertainty, but only sweeping reform of government and insurance reimbursements will preserve rural healthcare in the long term

By JAMES A. SUVER
Ridgecrest Regional Hospital CEO

I do not believe anyone who reads this will be surprised to see that it been a tumultuous past few years for Ridgecrest Regional Hospital — or indeed for healthcare in general, and rural providers in particular. 

During these times of unprecedented uncertainty our organization has continued to prioritize our resources around securing safe, quality healthcare delivery to our remote population. In hopes of sharing information on some of the behind-the-scenes efforts to achieve sustainability for all essential service lines, this column will be the first in a continuing series of updates and summaries on the challenges and opportunities, looming threats and potential solutions, losses and celebrations. 

The good news is, we remain solvent. But there is reason for vigilance because some of our essential service lines are not self-sustaining. Let's take a look at how we got here.

Federal and state policies (which continue to evolve, and often conflict) have been driving sweeping changes in healthcare for decades. Mounting obstacles, including costs of recruitment and liability insurance, expedited widespread collapse in the 1990s and 2000s of private practices like Drummond Medical Group. 

RRH was able to help retain access to providers by opening the Rural Health Clinics and taking on responsibility for several other clinical practices in the area. 

However, that was only the beginning of what would be an era of profound challenges, which also include:

• Some insurance reimbursements that have not been increased or adjusted since 2012

• State increases in minimum wages (more than $1 million a year in annual cost increases for RRH)

• Massive shortages nationwide in physicians and nursing staff

• State siphoning of Managed Care taxes (between $2 million and $4 million losses annually)

During that same period of time, RRH has been able to take the following steps to secure critical services to our remote population:

• Change in designation to a Critical Access Hospital in 2010, resulting in an estimated $6 million each year in additional reimbursements for services

• $5.5 million Distressed Hospital Loan

• $7 million in one-time Department of War funds to help reopen labor and delivery

• A $2 million annual gain in our revenue cycle, as a result of improving our reimbursements with commercial insurance companies

Our hospital is still recovering from $4 million in un-reimbursed losses relating to the 2019 earthquakes, and countless millions more in financial losses and service disruptions from the prolonged pandemic era. RRH is now facing new threats, including the potential loss of $11 million in annual revenues from the Cycle 9 Hospital Fee program, which is an essential component to keeping hospitals open in California.

But we also have some good news!

Scores of hospitals and clinics across the state have closed or suspended labor and delivery services since 2012. As far as we can tell, RRH was one of only two that were able to resume service. We are very grateful to the Navy for assisting, and have a team working tirelessly to find continuing solutions that protect services, like L&D, that protect our most vulnerable.

Every three years RRH conducts a Community Health Needs Assessment (available for view at rrh.org/CHNA). The number-one priority identified by the plurality of community participants was the need for additional general and family practice providers. In 2025, we were able to bring five new providers on board. Our recruitment efforts never end, but this is a huge success for our hospital and our community.

One thing that many of our advocates ask is how they can support the hospital. Recruitment and retention is one of those issues that challenges China Lake, our school district, our businesses, and virtually every other employer in town — creating the kind of environment in which people want to live. So thank you to all who do their part to improve the beauty, safety, and quality of life here.

In addition to our continued advocacy for fair reimbursements and protections for rural healthcare, we also partner with other local agencies to address the quality of life needs in Ridgecrest:

• Cerro Coso Community College effort to start a registered nursing program

• IWV Economic Development Corp. study and effort to restore air service

• Cooperation with Ridgecrest Area Association of Realtors and Ridgecrest Chamber of Commerce to engage in community advocacy

• A continuing dialog with our state and federal governments to find long-term solutions for sustainable healthcare in our region

To the staff at RRH who continue to take in stride the disruptions and changes in healthcare, we owe a debt of gratitude that can never be fully expressed. We know that this is also the hospital where they seek treatment for themselves and their families and loved ones, and that their investment in maintaining a culture of caring is as high as ever.

Thanks, also, to the Daily Independent — not only for providing this space for what will be a quarterly update, but for the hundreds of press releases, feature articles, and statements they have published regarding the hospital since we began experiencing distress.

I also want to acknowledge the members of the public who continue to trust us with their care, and who have taken the time to reach out with their questions. Our team takes the work of providing quality healthcare in our community very seriously, but we also do our best to respond to the concerns and questions we receive. We live in a culture of so many media platforms we understand it is difficult to know where to find the information you are looking for. If you want to know more about the hospital, you can follow Ridgecrest Regional Hospital on Facebook and Instagram, visit rrh.org/news-updates/, or email us at inquiries@rrh.org.

Pictured are Ridgecrest Regional Hospital CEO Jim Suver and Sacramento Advocate Kirk Kimmelshue at a recent trip to the state capitol. RRH continues to work closely with elected and government officials to identify and implement long-term solutions for local access to quality, affordable healthcare.