The California Department of Health Care Access and Information announced last week that it is taking action to support community hospitals struggling financially by awarding close to $300 million in no-interest loans to 17 health care facilities, including hospitals in Alameda, San Benito, Santa Cruz and Sonoma counties.
The loans, under the Distressed Hospital Loan Program, were announced Aug. 24 by Gov. Gavin Newsom.
The announced loans provide $8.3 million to Watsonville Community Hospital, $10 million to Hazel Hawkins Memorial Hospital, $17.65 million for St. Rose Hospital and $3.1 million for Sonoma Valley Hospital.
“Today we have provided much needed assistance to community hospitals across the state that desperately need financial help to provide the care their communities need,” said Health Care Access Director Elizabeth Landsberg. “I’m grateful to the Legislature for spearheading this effort to help make sure these vital healthcare institutions are fiscally stable so they can continue to provide quality, affordable health care for all Californians.”
The program offers interest-free, working capital loans to nonprofit and publicly operated financially-distressed hospitals. The Distressed Hospital Loan Program is jointly administered by the California Department of Health Care Access and Information and the California Health Facilities Financing Authority at the California State Treasurer’s Office. The two departments have notified the eligible hospitals what loan amounts they have been approved for, with the loans scheduled to be released in the coming weeks. Applications for the loans were received from 30 healthcare facilities.