According to a September 2 story by the Associated Press, the California State Treasurer’s Office is offering $9 million in interest-free loans to rural hospitals and community clinics impacted by the legislature’s failure to approve a state budget.
Loans are available for up to $750,000 for those rural facilities experiencing financial hardship due to delayed Medi-Cal reimbursements. The delinquent payments result from the state’s lack of funding—due to the budget impasse.
Rural clinics and hospitals are required to repay the loans within 45 days after the passage of the state budget. The funds are available through the California Health Facilities Financing Authority (CHFFA), confirmed state treasurer Bill Lockyer. CHFFA has been providing financing since its inception in 1988, and is currently chaired by Treasurer Lockyer.
“Patients and caregivers should not have to suffer because the state has no budget, and these emergency loans will help ensure they don’t,” stated Treasurer Lockyer in an announcement cited by the AP.
Based on the Sept. 2 AP report, loans for eight facilities were approved as of Thursday, Sept. 2. The funding recipients include Innovative Health Services in Chico, the George G. Glenner Alzheimer’s Family Centers in San Diego and Humboldt Senior Resource Center in Eureka. In July, Treasurer Lockyer announced a similar $750,000 loan offered from CHFF to the Medoc Medical Center, located in the small northeastern community of Medoc, CA.
According to the California State Treasurer website CHFF financing is offered through its Healthcare Expansion Loan Program II, also known as HELP II. These funds “may be used to purchase or construct new facilities, remodel or renovate existing facilities, and purchase equipment or furnishings.” The site also states the CHFFA has “CHFFA has loaned more than $52 million under HELP II.”
Despite the financial challenges facing a number of California hospitals and community clinics, there is still a significant need for qualified health professionals, including Santa Clara Registered Nurses, throughout the state. Get started on your San Francisco RN career with skilled training from Unitek College. Learn how our quality programs can help you pursue Sacramento RN jobs and other healthcare positions in the Bay Area.
For more on the California Health Facilities Financing Authority and the California State Treasure Office, please visit: