Help for Rural Providers During Budget Stalemate
|September 9, 2010||Posted by ITUP under Blog||
Last week, the state California Treasurer’s Office announced that the state will offer interest-free loans to help rural clinics and hospitals weather financial shortfalls until lawmakers pass a budget package.
On July 1, California suspended Medi-Cal payments for more than 1,000 health centers because the state lacked a budget for the new fiscal year. To pay health centers during the budget impasse, the state dipped into a $2 billion emergency pool that has now run out.
Now, the state has established a loan program, the California Health Facilities Financing Authority, which will offer up to $9 million in loans to rural hospitals and community clinics that have experienced delays in receiving Medi-Cal reimbursements.
The maximum loan will be for $750,000, and loans must be paid back within 45 days after a state budget is passed. More info on the loans and how to apply is available at the Treasure’s website.