California lawmakers OK emergency loans to failing hospitals

By ADAM BEAM
Associated Press

SACRAMENTO, Calif. (AP) — California lawmakers have agreed to loan $150 million to financially distressed hospitals. The vote on Thursday comes after the only hospital in rural Madera County closed in January. A report paid for by the California Hospital Association says 20% of the state’s more than 400 hospitals are at risk of closing. The money will be available as no-interest loans to hospitals that meet certain requirements. The Legislature could later choose to forgive some of those loans. Lawmakers said the $150 million is a short-term solution to the problem. They pledged to do more for hospitals later this year.