California has begun issuing short-term no-interest loans to rural hospitals and clinics as a result of the continued budget impasse.
Eight facilities have been granted loans totaling $1.9 million, available through the California Health Facilities Financing Authority.
The authority plans to use up to $9 million of its administrative fund balance to help cash-strapped providers dealing with late Medicaid reimbursements caused by the stalemate. A state budget was due at the start of the fiscal year on July 1. The loans must be repaid no later than 45 days after final adoption of a state budget.
Facilities granted the loans in this round include Innovative Health Care Services in Chico, Mendocino Coast Clinics in Fort Bragg, Mountain Health and Community Services in Campo and Lifelong Medical Care in Berkeley. More applications will be considered on Sept. 30.
“Patients and caregivers should not have to suffer because the state has no budget, and these emergency loans will help ensure they don’t,” California State Treasurer Bill Lockyer said in a written statement.
