Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

2 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

2 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

3 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

3 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

3 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

3 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

3 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

3 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

3 days ago
State Provides Funds for Two Valley Hospitals. How Much Will They Get?
By admin
Published 2 years ago on
August 24, 2023

Share

Getting your Trinity Audio player ready...

Two Valley hospitals are getting a monetary lifeline from the state of California. For one, it may mean enough to reopen. For the other, it may be enough to stay afloat.

The Department of Health Care Access and Information announced on Thursday the 17 California hospitals receiving a piece of its $300 million Distressed Hospital Loan Program. The 0% interest loans were meant to plug the holes left by COVID-19 and declining Medical reimbursement rates to the most financially distressed hospitals.

Kaweah Health in Visalia received $20.75 million after applying for $75 million.

Madera Community Hospital — which closed in December 2022 — received a $2 million bridge loan to cover operational costs. If Adventist Health follows through on its intended takeover of the hospital, Madera Community will receive an additional $50 million — the biggest earmark of hospitals on the list.

State Sen. Anna Caballero (D-Merced) was among the legislators behind the loan program. Two hospitals in her district, including Madera Community, received loans. Assemblywoman Esmeralda Soria (D-Merced) was also among the authors of the bill.

“It brings me tremendous relief to know that Madera Community Hospital and Hazel Hawkins Memorial Hospital, in San Benito County, have received grant awards and will be able to ensure that community members can once again receive services in their own communities,” Caballero said in a news release. “When seconds mean the difference between life and death, we cannot afford to have hospital doors closed.”

Analysts: Madera Needs Its Loans Forgiven

In July, Adventist Health signed a letter of intent saying it would administer operations of Madera Community.

Shortly before that, Madera County supervisors commissioned a financial analysis of what it would take to reopen Madera Community.

Force 10, the group commissioned for the study, found it would take $44.8 million just to reopen the hospital and operate it for 180 days. That includes rehiring staff and operational costs.

In order to be financially viable in the long run, Robert Minkin, managing partner for Force 10, said the hospital would need at least $30 million. That amount would also need to be a grant rather than a loan.

According to the terms of the state loans, the money can be repaid over 72 months.

Hospital administration is also trying to keep its license active. Madera supervisors granted the hospital $500,000 to keep it open through August. Without that money, the hospital’s license could expire, costing Adventist Health even more should it officially take over operations.

The $2 million bridge loan would go toward that same purpose.

Nearly $21 Million to Keep Kaweah Open

Kaweah Health had requested $75 million from the $300 million fund. In a May interview, Kaweah CEO Gary Herbst had said the hospital really needed $50 million to get back on its feet.

The hospital lost $140 million over the course of the pandemic, Herbst said. Without the ability to perform surgeries, hospital income was limited while at the same time, hospitals paid vastly more for staffing costs.

“A big thank you to Senator Shannon Grove, Assemblyman Vince Fong, and Assemblyman Devon Mathis for their work to make the Distressed Hospital Loan Program a reality,” said Herbst in a statement to GV Wire.

To cover its losses, Kaweah had to use up its cash on hand. The bond covenants issued by Kaweah Health mandate that the hospital never drop below 90 days cash on hand. At one point, the amount had dropped to 62 days.

Herbst said the money will go directly into replenishing their cash reserves.

“We have more work to do, but I’m proud to have led this effort, and am grateful the Legislature and governor moved quickly to ensure vulnerable communities across California have healthcare access when they need it most,” Soria said.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

DON'T MISS

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

DON'T MISS

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

DON'T MISS

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

DON'T MISS

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

DON'T MISS

Oil Dips Ahead of Expected OPEC+ Output Increase

DON'T MISS

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

DON'T MISS

Fresno County Authorities Investigating Suspicious Death of Transient Man

DON'T MISS

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

DON'T MISS

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

UP NEXT

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

UP NEXT

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

UP NEXT

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

UP NEXT

Oil Dips Ahead of Expected OPEC+ Output Increase

UP NEXT

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

UP NEXT

Fresno County Authorities Investigating Suspicious Death of Transient Man

UP NEXT

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

UP NEXT

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

Valley Crime Stoppers’ Most Wanted Person of the Day: Rachelle Maria Blanco

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

15 minutes ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

6 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

7 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

7 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

7 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

7 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

7 hours ago

California’s Politics Drifts Right While New York’s Leans Left

8 hours ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

1 day ago

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

1 day ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

TikTok is building a new version of its app for users in the United States ahead of a planned sale of the app to a group of investors, The I...

4 minutes ago

A logo is displayed over a door at the U.S. headquarters of the social media company TikTok in Culver City, California, U.S. January 17, 2025. (Reuters File)
4 minutes ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

Boxes of aid are stacked as Gaza Humanitarian Foundation said it has commenced operations to begin distribution of aid, in Rafah, in the southern Gaza Strip, May 26, 2025. (Reuters File)
6 minutes ago

Hamas Government Office Rejects US Accusation of Involvement in Gaza Aid Site Attack

A volunteer searches for flood victims after deadly flooding in Kerr County, Texas, U.S., July 6, 2025. REUTERS/Sergio Flores
9 minutes ago

Death Toll From Texas Floods Reaches 78, Trump Plans Visit

Tesla CEO and X owner Elon Musk listens as US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC, U.S. on November 13, 2024. (Reuters File)
15 minutes ago

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

A 22-year-old suspected DUI driver crashed into a parked CHP motorcycle and tow truck on Highway 99 near Fresno, narrowly missing an officer and bystanders, CHP said Saturday, July 5, 2025. (CHP)
6 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A service member of a drone unit of the 24th Separate Mechanized Brigade named after King Danylo of the Ukrainian Armed Forces controls a heavy combat drone while it flies over positions of Russian troops, amid Russia's attack on Ukraine, in Donetsk Region, Ukraine June 12, 2025. (Reuters File)
7 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

An Israeli tank maneuvers in Gaza, as seen from the Israeli side of the border, July 6, 2025. (Reuters/Amir Cohen)
7 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

The Madre Fire near New Cuyama has burned nearly 80,000 acres as of Sunday, July 6, 2025, morning, prompting widespread evacuation orders and warnings across three counties. (CalFire)
7 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

Help continue the work that gets you the news that matters most.

Search

Send this to a friend