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Senate budget subcommittee approves $25M emergency grants for distressed hospitals
Summary
The subcommittee passed AB 108, a budget 'bill junior' establishing a one-time $25 million grant fund at HCAI to help nonprofit hospitals with fewer than 10 days of cash on hand; members stressed the measure is an emergency bridge and raised questions about data, eligibility thresholds and long-term solutions.
The California Senate budget subcommittee voted 18–0 to pass Assembly Bill 108, a one-time $25,000,000 appropriation to create an emergency hospital grant program administered by the Department of Health Care Access and Information (HCAI).
Chair Laird said the legislation is intended as an immediate bridge to prevent imminent hospital closures before the July 1 start of the fiscal year. "This bill addresses hospitals that might not make it till July 1," the chair said in opening remarks.
Guadalupe Rodriguez of the Department of Finance told the committee that AB 108 would fund grants for nonprofit hospitals that apply and meet narrowly defined eligibility: less than 10 days of cash on hand, documented efforts to exhaust other financial options,…
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