California Gov. Gavin Newsom has signed a bill that will provide up to $25 million in grants to nonprofit and public hospitals facing immediate risk of closure.
The legislation, AB 108, establishes a one-time grant program that will be administered by the California Department of Health Care Access and Information, according to a May 7 news release from California Sen. John Laird’s office.
To be eligible, hospitals must have fewer than 10 days cash on hand, have exhausted other financial options and serve patient populations where more than half of patients are enrolled in government payers or are uninsured.
The bill is intended to stabilize a small number of hospitals that could otherwise become insolvent before July 1, according to the release.
“These hospitals are essential providers of care in communities that often have few alternatives,” Mr. Laird said in the release. “AB 108 provides an immediate lifeline to help keep critical healthcare services operating while the Legislature continues work on broader, long-term solutions.”
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.