Distressed Hospital Loan Program Budget Trailer Bill

The Legislature took early budget action on AB 112, which establishes a distressed hospital loan program substantially similar to AB 412. The trailer bill immediately appropriated $150 million to provide loans to distressed hospitals meeting specified criteria. The governor signed AB 112 on May 15. Subsequent budget action added an additional $150 million to the fund, for a total of $300 million. The Department of Health Care Access and Information announced close to $300 million in awards to 17 hospitals on Aug. 24.