CA Gives $56M in Emergency Loans to Distressed Imperial County Hospitals

Imperial County’s two hospitals will obtain a mixed $56 million in state loans underneath funding introduced final week.

The El Centro Regional Medical Middle and Pioneers Memorial Hospital in Brawley every have been granted $28 million underneath the lately created Distressed Hospital Mortgage Program. That’s the third-largest quantity granted Thursday, behind the $33.2 million awarded to the Tri-Metropolis Medical Middle in Oceanside and $29 million given to the Dameron Hospital in Stockton.

Each El Centro Regional and Pioneers utilized for a part of the $300 million in out there funding as they grapple with monetary struggles which might be affecting many hospitals throughout the state. Of this system’s 30 candidates, simply 17 have been awarded loans.

“Immediately we have now supplied a lot wanted help to group hospitals throughout the state that desperately want monetary assist to supply the care their communities want,” stated Elizabeth Landsberg, director of the state Division of Well being Care Entry and Data, in a information launch. The company collectively administers the emergency mortgage program.

“I’m grateful to the Legislature for spearheading this effort to assist be sure that these important healthcare establishments are fiscally steady to allow them to proceed to supply high quality, reasonably priced well being take care of all Californians.”

As inewsource beforehand reported, El Centro Regional and Pioneers have been scuffling with rising prices and declining revenues because the COVID-19 pandemic. State laws has proposed making a countywide well being district to assist deal with the monetary troubles, although it’s been met with pushback at instances from Pioneers officers. 

El Centro Regional, the county’s largest hospital, had initially sought a $40 million mortgage. Pioneers had utilized for $35 million.

The zero-interest loans are repayable over 72 months, with an preliminary 18-month grace interval originally of the mortgage time period. The state program sunsets Dec. 31, 2031.

“I’m excited and grateful that the Imperial Valley acquired a complete of $56 million from the state’s Distressed Hospital Mortgage Program,” El Centro Regional board President Tomás Oliva advised the Calexico Chronicle. “Each El Centro Regional Medical Middle and Pioneers Memorial Healthcare District stand to profit from these loans, however primarily the sufferers each hospitals serve within the Imperial County.”

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