Newsom Approves $150 Million in No-Interest Loans for Hospitals

California Governor Gavin Newsom approved $150 million in interest-free loans to help financially struggling hospitals, as he seeks to revive a multi billion dollar tax on health care providers, also intended to bolster hospitals.

The decision follows the December closing of the only hospital in Madera County in the Central Valley, which has left the region’s 160,000 residents without reliable access to essential hospital services.

Across the state, hospitals have been grappling with worsening financial conditions due to rising labor and inflationary costs, coupled with stagnant Medicaid reimbursement rates, according to Carmela Coyle, president of the California Hospital Association ...