Economical Support Coming for Distressed Community Hospitals Throughout California


WHAT YOU Need TO KNOW: Hospitals across California and the state are facing financial tension, primarily due to the fact the COVID-19 pandemic. To help community hospitals remain open, Governor Newsom and the Legislature established the Distressed Medical center Financial loan Software – supporting services in the most severe fiscal distress with a lifeline to assistance them keep on being open or potentially reopen.


SACRAMENTO – Governor Gavin Newsom is saying almost $300 million in zero-fascination financial loans to 17 neighborhood hospitals across California. The funding was manufactured feasible by means of the Distressed Hospital Financial loan Software developed in partnership with the legislature.

“Across the country, neighborhood hospitals are enduring economic worry like never prior to. These hospitals are usually the only acute wellness care accessibility issue in their area,” explained Governor Newsom. “In partnership with the legislature, we are working to preserve the doorways open up so Californians can obtain essential care close to residence.”

WHY THIS Matters: Quite a few of the community hospitals remaining supported today throughout California are in a lot more rural areas of the condition, serving communities with reduced money, and communities of color. Maintaining these health treatment accessibility factors open means Californians can keep on to obtain the wellness treatment services they want or need in their community. 


  • Senator Caballero: “With various hospitals on the brink of individual bankruptcy in California, my amount just one precedence this calendar year has been to make certain that residents of the 14th Senate District had entry to superior good quality health and fitness care. I have worked diligently with my legislative colleagues, the Governor and stakeholders to locate sustainable options and the Distressed Healthcare facility Mortgage Application became the centerpiece of a larger aid offer. It brings me large reduction to know that Madera Community Clinic and Hazel Hawkins Memorial Hospital in San Benito County have obtained grant awards and will be able to make sure that people can the moment once more acquire services in their individual communities. When seconds necessarily mean the difference in between daily life and loss of life, we can’t afford to pay for to have hospitals closed. Right now is a excellent working day for Senate District 14.”
  • Assemblywoman Soria: “Reopening Madera Neighborhood Healthcare facility has been my range one priority. The millions in fiscal support is an important stage in the right path to support Madera Local community Medical center reopen its doors to the local community. We have additional operate to do, but I’m proud to have led this hard work, and am grateful the Legislature and Governor moved rapidly to guarantee vulnerable communities across California have wellbeing-treatment entry when they require it most. I continue to be hopeful and will continue on to function hard to be certain Madera Group Clinic reopens.”
  • Assemblymember Wooden: “I’m grateful to Governor Newsom for recognizing the determined monetary problem some hospitals come across them selves in, at chance of closure instantly impacting total communities, especially all those with no other hospitals nearby. We were in a position to perform with each other to protected funding in the price range to provide these a lot desired loans to the distressed hospitals that evidently demand the resources in purchase to carry on to present critical health treatment to their communities.”
  • Assemblymember Garcia: “The Distressed Medical center Loan System extends a lifeline to economically underserved hospitals, like these in our rural area, struggling to hold their doors open up. We are grateful for the swift actions and collaborative leadership of Governor Newsom and my Legislative colleagues that have permitted us to deliver urgent monetary reduction to hospitals. These assets will guard obtain to crisis healthcare products and services in Imperial Valley and assistance preserve lives.”

ABOUT THE DISTRESSED Hospital Loan Software: In May perhaps, as part of early spending plan motion, Governor Newsom introduced the generation of the Distressed Healthcare facility Financial loan Plan (DHLP) for an initial $150 Million. Governor Newsom introduced an added $150 Million into the software by means of the Managed Care Group (MCO) Service provider tax, doubling the monetary guidance obtainable to these essential services. The DHLP focuses on specified general public and nonprofit local community hospitals that are going through the most severe money distress – using the cash to possibly reopen a a short while ago closed facility or maintain a facility on the brink of closure or lessening its services from closing. The Section of Overall health Care Obtain and Information and facts and the California Wellness Services Financing Authority (CHFFA) at the California State Treasurer’s Business office will jointly administer the plan. The two departments have notified the eligible hospitals what mortgage amounts they have been awarded, with the loans scheduled to be released in the coming months.

A lot more details on today’s announcement can be found here in English & Spanish

Simonne Stigall

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