State Awards $300 Million in No-Interest Loans to Community Hospitals

Governor Newsom announced nearly $300 million in no-interest loans to 17 community hospitals across the state through the Distressed Hospital Loan Program (DHLP). Back in May, as part of an early budget action, Governor Newsom and the Legislature created the DHLP with an initial $150 million investment to provide zero-interest cash flow loans to nonprofit and public hospitals experiencing extreme financial distress. An additional $150 million was brought into the program through the Managed Care Organization (MCO) Provider tax authorized through the 2023 Budget this summer.