Today, Governor Newsom announced nearly $300 million in
no-interest loans to 17 community hospitals across the state
through the Distressed Hospital Loan Program (DHLP). As part of
an
early budget action in May, Governor Newsom and the
Legislature created the DHLP with an initial $150 million
investment to provide zero-interest cash flow loans to nonprofit
and public hospitals experiencing extreme financial distress. An
additional $150 million was brought into the program through the
Managed Care Organization (MCO) Provider tax authorized through
the 2023 Budget this summer.
The DHLP focuses on nonprofit and public hospitals that are
experiencing the most server financial distress and funds will be
used to either reopen recently closed facilities or keep a
facility on the brink of closure from shutting down or reducing
services. DHLP is administered jointly by the Department of
Health Care Access and Information and the California Health
Facilities Financing Authority at the State Treasurer’s Office.
The departments have notified the eligible hospitals of the
awarded loan amounts, which will be released in the coming weeks.
Additional information on the DHLP, including a full list of
hospitals receiving loans and the amounts awarded, can be found
here.
