Catalina Island Health, the only full-service hospital on Santa Catalina Island, faces ongoing financial challenges that threaten its ability to continue providing critical medical care to the island’s roughly 4,000 year-round residents and more than 1 million visitors annually. The hospital’s CEO, Tim Kielpinski, described the situation as precarious, noting that as recently as mid-2025 the hospital had only six days of cash available before emergency county funding prevented a potential closure.
The hospital is a 12-bed private nonprofit facility affiliated with UCI Health, operating a small two-bed emergency room where nurses handle routine trauma cases for locals and tourists alike. While the financial outlook has improved due to emergency bailouts and new funding measures, Catalina Island Health is still navigating persistent economic pressures common to many community hospitals across Los Angeles County. Rising inflation, inadequate reimbursement rates for Medi-Cal patients, uninsured individuals, and challenges with insurance payments all contribute to ongoing deficits.
The hospital received a significant financial boost starting in 2025, when Los Angeles County disbursed $3 million raised through Measure B, a property tax initiative originally aimed at supporting trauma centers and emergency services. These payments have improved the hospital’s cash reserves to about 45 days on hand, the highest in a decade. However, these are one-time infusions rather than guaranteed ongoing funding, leaving the facility vulnerable to future budget shortfalls. Additional relief comes from Measure ER, a half-cent sales tax approved by county voters in June, which aims to provide $1 billion annually to support hospitals and clinics.
Hospital officials, including CEO Kielpinski and Jessica Flores, the director of clinic operations, emphasize the importance of the facility to the island’s diverse community. Many residents, including lower-income workers who form the backbone of the island’s tourism-driven economy, rely on the hospital for treatment of chronic conditions and emergency care. Without the hospital, residents would be forced to travel off-island by ferry, helicopter, or plane for even basic medical services, resulting in costly and potentially delayed care. Emergency patient transports already account for around 250 helicopter flights annually, with estimates suggesting that nearly 1,500 additional airlifts could be required if the hospital closes, significantly increasing costs for county taxpayers.
Beyond financial stresses, Catalina Island Health faces a looming infrastructure challenge. Its current building, completed in 1960, does not meet California’s earthquake safety standards and must be replaced by January 2032. Hospital leadership has proposed a $175 million project for a new facility with expanded services, including infusion therapy, mammography, and colonoscopies. They anticipate securing a $145 million low-interest loan from the U.S. Department of Agriculture but must raise $30 million in local funds to access it. A recent fundraiser in Avalon generated a record $5.1 million, yet the hospital still needs approximately $18 million more within the next year and a half.
If the hospital cannot resolve its financial and infrastructure challenges, the island’s healthcare system could be forced into a reduced emergency-response model reliant on fire and rescue services with limited medical capabilities. This scenario raises concerns about healthcare access and outcomes for Catalina residents and visitors alike. Hospital officials continue to seek partnerships and community support to ensure the facility’s survival and ability to serve future generations.