State Awards $300 Million in No-Interest Loans to 17 Community Hospitals
August 24, 2023
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.