State Treasurer Fiona Ma Announces Approval to Implement $150 Million Loan Program for California’s Financially Distressed Hospitals 

SACRAMENTO –  California State Treasurer Fiona Ma today announced that the California Health Facilities Financing Authority (CHFFA) has taken action to enable the implementation of a $150 million emergency loan program for California’s financially distressed non-profit and public hospitals.

“Californians depend on these hospitals for health care and emergency services, and today’s approval is going to help keep the doors open,” said Treasurer Ma, who also serves as chair of the CHFFA board. “These facilities are often the only source of healthcare in rural and remote parts of the state and keeping them open can be a life-or-death matter. My team is already working closely with Governor Newsom’s administration to get this critical program off the ground and help keep these hospitals open.”

California’s not-for-profit and public hospitals are integral to the state’s healthcare system and provide substantial levels of care to the uninsured and Medi-Cal and Medicare populations. Rising operating expenses and other costs have outpaced reimbursement rates, causing some facilities to close or declare bankruptcy, while others have struggled to stay afloat.

To address the growing crisis, Governor Gavin Newsom signed Assembly Bill 112 on May 15, which created the Distressed Hospital Loan Program (DHLP), a partnership between the Department of Health Care Access and Information (HCAI) and CHFFA to provide $150 million in zero-interest loans to these financially distressed hospitals. 

The CHFFA board approved a resolution today that enabled the executive director and staff to work with HCAI to implement DHLP and to issue the loans.

HCAI and CHFFA will continue to work to establish a loan application review methodology and plan to have an application live in June. More information can be found at CHFFA and HCAI’s websites.

CHFFA was established in 1979 to provide financial assistance to public and non-profit health care facilities through loans, grants, and tax-exempt bonds. The diverse nature of the facilities funded by CHFFA reflects California’s changing health care needs. From rural community-based organizations to large multi-hospital systems, CHFFA has financed a wide range of providers and programs throughout the state.