Gov. Gavin Newsom, alongside members of the California Legislature, signed the Distressed Hospital Loan Program bill into law on May 15, which will provide aid to struggling California hospitals.
The $150 million program provides zero-interest loans to nonprofit or public hospitals experiencing extreme financial distress and will help struggling hospitals remain open or assist hospitals that have closed to reopen their doors.
The Department of Health Care Access and Information, in coordination with the California Health Facilities Financing Authority, will create eligibility criteria, with priority given to hospitals with a high proportion of Medi-Cal patients.
California Gov. Gavin Newsom announces a proposed 2024 ballot initiative to treat people at risk of homelessness at Alvarado Hospital in San Diego on March 19, 2023. (Courtesy of Office of Governor Gavin Newsom)
“This new program will help hospitals in extreme financial distress get the assistance they need as quickly as possible,” Newsom said in a statement. “My administration has been working closely with hospitals across the state, and we will continue to do all we can to ensure communities can continue to access the care and services they need without disruption.”…