Madera Community Hospital has been granted a lifeline from the state to cover operating costs while it forms its reopening plan.
Thursday, the Department of Health Care Access and Information (HCAI) awarded around $300 million in no-interest loans to healthcare facilities, including $2 million for Madera Community Hospital.
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The backstory: Madera Community Hospital closed its doors in December and declared bankruptcy soon after due to a dire financial position caused by the COVID-19 pandemic and low Medi-Cal reimbursement rates.
- Last month Adventist Health stepped in with an agreement to take over the hospital and create a reopening plan, making the hospital eligible for state support through the Distressed Hospital Loan Program.
- The Distressed Hospital Loan Program was funded through Assembly Bill/Senate Bill 112, and the hospital loan parts of those bills were pushed by Sen. Anna Caballero (D–Merced) and Asm. Esmeralda Soria (D–Fresno).
The big picture: Seventeen hospitals and healthcare facilities throughout the state were awarded funds under the no-interest loan program.
- Madera Community Hospital will receive a $2 million bridge loan to cover basic operational costs while Adventist Health creates a comprehensive reopening plan.
- Once Adventist Health presents that plan to the state, Madera Community Hospital will be eligible for an additional $50 million loan from the state program.
- The no-interest loans are repayable over 72 months with an initial 18-month grace period at the start.
What they’re saying: Caballero said in a statement that it brings her tremendous relief to see Madera Community Hospital receive the no-interest loan.
- “When seconds mean the difference between life and death, we cannot afford to have hospital doors closed,” Caballero said. “Today is a great day for Senate District 14.”
- Soria said reopening Madera Community Hospital has been her top priority since being elected last November.
- “The significant financial assistance is an important step in the right direction to help Madera Community Hospital reopen its doors to the community,” Soria said. “We have more work to do, but I’m proud to have led this effort, and am grateful the Legislature and Governor moved quickly to ensure vulnerable communities across California have health-care access when they need it most. I remain hopeful and will continue to work hard to ensure Madera Community Hospital reopens.”
