Local ballot measures: County of Fresno.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill aims to strengthen the Distressed Hospital Loan Program in California, which provides loans to struggling hospitals to prevent closures or facilitate reopenings. Currently, integrated health systems with more than two hospitals are ineligible for these loans. The bill proposes to make any hospital, regardless of ownership, eligible for loans if they meet criteria for significant financial distress, incorporating factors like credit rating and debt capacity, and accounting for federal policy changes. It also extends the program’s lifespan through January 1, 2035, and modifies the loan forgiveness process to include future financial performance projections.
Key provisions
- Makes any hospital eligible for state assistance under the program, regardless of ownership type, if it meets criteria for significant financial distress.
- Includes credit rating and debt capacity as factors in determining financial distress.
- Requires loan projections to account for federal and state policy changes, including the federal One Big Beautiful Bill Act.
- Extends the program’s duration to January 1, 2035.
- Requires hospitals with associated entities to meet specific criteria before being eligible for loans.
- Limits loan repayments to 20% of Medi-Cal reimbursements.
- Allows for loan forgiveness based on a hospital’s good faith effort to comply with program requirements and future financial projections.
- Requires the department to incorporate future financial performance projections into the loan forgiveness evaluation process.
Bill text
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