Southern Inyo Healthcare District Faces Looming Bankruptcy Threat – September 23, 2025

LONE PINE, CA –

The Southern Inyo Healthcare District (SIHD) Board of Directors gathered for a tense special meeting on September 23, 2025, at Lone Pine High School, with the shadow of bankruptcy looming large. President Bruce Branson led the session, joined by Vice President Carma Roper, Secretary Rosanne Lampariello, Treasurer Mark Lacey, and Director Jaque Hickman—participating remotely from North Carolina. CEO Dr. Kevin Flanigan guided the board through a pivotal vote that could reshape the district’s future, echoing a challenging chapter from its past.

Called to order at 5:00 p.m., the meeting opened with the Pledge of Allegiance and agenda approval. Attendees then shifted to a closed session for discussions on two potential litigation cases, reconvening around 5:40 p.m. Branson reported that only one case was addressed, with the second deferred to the end.

The core of the evening unfolded in business items, starting with Resolution 25-06: Declaring and Authorizing the Filing of Chapter 9 Bankruptcy. Branson clarified upfront that this doesn’t trigger an immediate filing—it’s an authorization granting Flanigan flexibility to proceed if conditions worsen, potentially in days, months, or not at all if recovery takes hold. This mirrors SIHD’s history; the district emerged from a five-year Chapter 9 bankruptcy in 2020, approved by the U.S. Bankruptcy Court after community-backed restructuring. Back then, persistent financial strains from rural service demands and revenue shortfalls tested the hospital’s resilience, much like today’s pressures.

Board members dissected the crisis’s roots: eroded community trust due to past public relations missteps has driven patients away, with many now transferred to larger facilities like those in Ridgecrest or Bishop. Flanigan outlined immediate cost-cutting—slashing his salary from $250,000 to $185,000 and trimming staff hours to save $44,000 in labor, avoiding layoffs for now. But he warned that ongoing trends could force tougher choices.

Under Item D, Flanigan proposed lifelines. Blue Shield of California is poised to advance $250,000 in future payments for repayment over time, buying breathing room. He also eyed revenue boosts via swing beds—versatile hospital rooms that toggle between acute care and skilled nursing, a revenue staple for rural outfits like SIHD by billing Medicare for extended post-acute stays. It was cautioned that restructuring alone won’t fix long-term woes, underscoring the need for broader support. An additional parcel tax on district users surfaced as another idea, though its passage in a cash-strapped community…

remains uncertain. There wasn’t too much public comment made at the meeting, but you could see the stress in the faces of the audience.

The board approved the resolution, CEO contract amendment, restructuring proposal, and lastly the September 16th Board Meeting minutes (with minor edits). With some options now approved, the CEO has more tools to attempt to curb this conundrum. Near the end, Director Hickman closed with optimism, announcing State Senator Marie Alvarado-Gil will visit on September 28 to tour facilities—encouraging locals to greet her with signs and dialogue. The board recessed into closed session at 6:29 p.m. and adjourned shortly after.

As SIHD navigates this fork in the road, the stakes couldn’t be higher for Lone Pine’s lifeline hospital. Can these measures stem the tide, or will Chapter 9 return? The coming weeks will tell. Stay tuned as Sierra Wave Media tracks this story—send me an email at [email protected] with your thoughts, comments, or feedback.

By Tyler Beadle, Sierra Wave Media Writer