California Gov. Gavin Newsom signed legislation creating a $150 million loan program for financially distressed hospitals into law.
The California Assembly approved the Distressed Hospital Loan Program earlier this month. It will provide zero-interest cash flow loans to nonprofit and public hospitals on the brink of closure or recently closed. Eligibility criteria are still being developed, though the program is expected to support the reopening of Madera Community Hospital, which shut its doors at the start of the year.
The loans will be administered by the state’s department of healthcare access and information, and the California Health Facilities Financing Authority. Read more.
