State approves $57mil loan, new management for Madera Community Hospital

After being shut down for over a year, Madera Community Hospital now has the funding to launch the reopening process under new management.

Madera Community Hospital has been given the green light to reopen under new management by the state and will receive a $57 million loan to facilitate the move. 

California Gov. Gavin Newsom announced the loan approval on Monday. 


The backstory: After declaring bankruptcy and completely shutting down by January 2023, Madera Community Hospital sought deals with outside companies to take over the hospital in the hopes of bringing it back to life. 

  • American Advanced Management, which has a history of reopening financially struggling hospitals in California, reached a deal last December to take over the hospital. 
  • Despite an 11th hour joint bid from Adventist Health and UCSF, a federal judge signed off on the deal in February. 

The big picture: The California Department of Public Health approved the application that American Advanced Management filed to take over Madera Community Hospital. 

  • Additionally, the Department of Health Care Access and Information and the California Health Facilities Financing Authority approved a $57 million no-interest loan for the hospital. That came through the Distressed Hospital Loan Program, which was established last year. 

What they’re saying: Sen. Anna Caballero (D–Merced) thanked Newsom and his office for their partnership and support to secure funding to reopen Madera Community Hospital. 

  • “I remain cautiously optimistic that our work over the last two years will result in the successful reopening of the hospital,” Caballero said. “Madera and the surrounding communities are in desperate need of healthcare services and access. I look forward to the day when the hospital can open its doors to serve the public.”
  • Asm. Esmeralda Soria (D–Fresno) echoed Caballero, saying she looks forward to continuing to work alongside state and local partners to ensure Madera residents regain access to healthcare. 
  • “Reopening Madera Community Hospital has and continues to be my number one priority,” Soria said. “Today’s news moves us closer to restoring essential healthcare services to our community.” 
  • Madera Mayor Santos Garcia thanked Newsom, Caballero and Soria for their support throughout the process. 
  • “The hospital plays a crucial role in providing essential medical services to our community and restoring its operation aligned with our priority of ensuring quality healthcare for our community,” Garcia said. 
  • Asm. Jim Patterson (R–Fresno) said in a statement, “The State, the Madera County Board of Supervisors, and the Bankruptcy court all made the right choice by selecting American Advanced Management, Incorporated to reopen MCH. AAM made a very compelling case, and, thanks to this loan, I look forward to seeing them reopen this desperately needed hospital.”
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