California lawmakers approve emergency loan program for hospitals
The loan program allocates $150 million for not-for-profit and public hospitals in significant financial distress.
MADERA COUNTY, Calif. (KFSN) -- Senate Bill/Assembly Bill 122 has been approved by legislators in Sacramento.
It is now on Governor Gavin Newsom's desk waiting to be signed.
The bill will create the Distressed Hospital Loan Program, aimed at helping struggling hospitals throughout the state.
Two of the hospitals are in the Central Valley: Kaweah Health and the shuttered Madera Community.
The loan program allocates $150 million for not-for-profit and public hospitals in significant financial distress.
"It gets us one step closer to being able to have a plan and gives us an incentive to being able to have a partner to help us reopen the hospital," said Assemblymember Esmeralda Soria (D -Merced) about Madera Community.
If a loan is approved for the defunct hospital, it would be only the first in several steps of a complex process to get the doors reopened.
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