California distressed hospital loan legislation expected to pass

California legislation that would create a $150 million loan program for financially distressed hospitals is expected to pass and could be signed into law May 4, Assemblywoman Esmeralda Soria told KVPR May 3.

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The bill would provide funds to reopen Madera (Calif.) Community Hospital, which has been closed since late last year. The legislation will pass just before the hospital’s May 26 deadline to renew its license. If the hospital is unable to renew by the deadline, it would have to apply for an all-new license to reopen, which would require costly facility updates..

The bill would provide interest-free cash loans to financially distressed hospitals. The loans are meant to be a short-term solution. 

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