WHAT YOU NEED TO KNOW: Hospitals throughout California and the nation are going through monetary stress, particularly for the reason that COVID-19 pandemic. To assist group hospitals stay open, Governor Newsom and the Legislature created the Distressed Hospital Loan Program – supporting services in essentially the most extreme monetary misery with a lifeline to assist them stay open or doubtlessly reopen.

SACRAMENTO – Governor Gavin Newsom is asserting almost $300 million in zero-interest loans to 17 group hospitals throughout California. The funding was made doable by way of the Distressed Hospital Loan Program created in partnership with the legislature.

“Across the country, community hospitals are experiencing financial stress like never before. These hospitals are often the only acute health care access point in their area,” mentioned Governor Newsom. “In partnership with the legislature, we’re working to maintain the doorways open so Californians can entry crucial care near residence.“

WHY THIS MATTERS: Many of the group hospitals being supported at this time throughout California are in additional rural areas of the state, serving communities with decrease revenue, and communities of colour. Keeping these well being care entry factors open means Californians can proceed to entry the well being care companies they need or want of their group. 

LOCAL LEADERS VOICE SUPPORT

• Senator Caballero: “With numerous hospitals on the brink of bankruptcy in California, my number one priority this year has been to ensure that residents of the 14th Senate District had access to high quality health care. I have worked diligently with my legislative colleagues, the Governor and stakeholders to find sustainable solutions and the Distressed Hospital Loan Program became the centerpiece of a larger relief package. It brings me tremendous relief to know that Madera Community Hospital and Hazel Hawkins Memorial Hospital in San Benito County have received grant awards and will be able to ensure that people can once again receive services in their own communities. When seconds mean the difference between life and death, we cannot afford to have hospitals closed. Today is a great day for Senate District 14.”

• Assemblywoman Soria: “Reopening Madera Community Hospital has been my number one priority. The millions in financial assistance is an important step in the right direction to help Madera Community Hospital reopen its doors to the community. We have more work to do, but I’m proud to have led this effort, and am grateful the Legislature and Governor moved quickly to ensure vulnerable communities across California have health-care access when they need it most. I remain hopeful and will continue to work hard to ensure Madera Community Hospital reopens.”

• Assemblymember Wood: “I’m grateful to Governor Newsom for recognizing the desperate financial situation some hospitals find themselves in, at risk of closure directly affecting entire communities, especially those with no other hospitals nearby. We were able to work together to secure funding in the budget to provide these much needed loans to the distressed hospitals that clearly require the resources in order to continue to provide critical health care to their communities.”

• Assemblymember Garcia: “The Distressed Hospital Loan Program extends a lifeline to economically underserved hospitals, like those in our rural area, struggling to keep their doors open. We are grateful for the swift actions and collaborative leadership of Governor Newsom and my Legislative colleagues that have allowed us to deliver urgent financial relief to hospitals. These resources will protect access to emergency healthcare services in Imperial Valley and help save lives.”

ABOUT THE DISTRESSED HOSPITAL LOAN PROGRAM: In May, as a part of early funds motion, Governor Newsom introduced the creation of the Distressed Hospital Loan Program (DHLP) for an preliminary $150 Million. Governor Newsom introduced an extra $150 Million into this system by way of the Managed Care Organization (MCO) Provider tax, doubling the monetary help obtainable to those crucial services. The DHLP focuses on sure public and nonprofit group hospitals which might be experiencing essentially the most extreme monetary misery – utilizing the funds to both reopen a lately closed facility or hold a facility on the point of closure or decreasing its companies from closing. The Department of Health Care Access and Information and the California Health Facilities Financing Authority (CHFFA) on the California State Treasurer’s Office will collectively administer this system. The two departments have notified the eligible hospitals what mortgage quantities they’ve been awarded, with the loans scheduled to be launched within the coming weeks.

More particulars on at this time’s announcement may be discovered right here in English & Spanish