The commitment includes a $25 million charitable grant and the purchase and loan of a $7 million modular building that will provide temporary emergency care space while the hospital's Hope Emergency Center is expanded, according to Kaiser Permanente.
The 131-bed nonprofit hospital opened in 2015 with an emergency department designed with up to 29 treatment bays to accommodate about 25,000 visits annually. The emergency department is now handling about 125,000 visits a year -- five times the number it was designed to serve, officials said.
The demand has resulted in some patients being triaged and treated in field tents erected in the hospital parking lot, according to Kaiser.
About 80% of the hospital's patients are covered by Medi-Cal, while nearly 95% of emergency department visits involve patients covered by Medi-Cal or Medicare or who are uninsured, officials said.
"This gift -- the largest in MLK's history -- strengthens our ability to offer care in the safe, dignified setting our community deserves," MLK Community Healthcare CEO Dr. Elaine Batchlor said. "As our partner and champion, Kaiser Permanente is expanding its history of commitment to the South LA community with support that is as timely as it is impactful."
The funding will support a permanent expansion of the emergency department and long-term improvements to emergency care. The modular facility is intended to allow emergency services to continue during construction.
"This is about more than expanding an emergency department. It is about strengthening the health care infrastructure that Los Angeles families depend on today and will continue to rely on for generations to come," Greg A. Adams, chair and CEO of Kaiser Permanente, said in a statement.
CEO with front row seat to history now striven to heal South LA
The announcement comes a week after the Los Angeles County Board of Supervisors voted to review the way the county distributes revenue from Measure B, a voter-approved 2002 parcel tax that provides funding for trauma hospitals and emergency medical services.
The review was proposed by Supervisor Holly Mitchell amid concerns about federal funding cuts and policies affecting Medi-Cal eligibility that could increase financial pressure on hospitals serving large numbers of publicly insured and uninsured patients.
MLK Community Hospital, a private non-trauma hospital, has traditionally received a portion of excess Measure B revenue remaining after allocations are made to county hospitals and medical centers with trauma centers.
The Measure B review sparked concerns among some area hospitals that changes to the funding formula could reduce their allocations. Mitchell and other supervisors stressed that the review does not call for funding to be taken away from trauma hospitals.
The county's consultant is expected to examine whether the Measure B allocation formula should be adjusted to better reflect current demands on hospitals and emergency departments. The motion calls for a report back in 180 days.
City News Service contributed to this report.