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Guadalupe County Hospital withdraws $220,000 emergency funding request after board questions
Summary
Guadalupe County Hospital sought about $220,000 to replace a failing dental-office HVAC system but withdrew its request after the board discussed the hospital's available reserves, contribution plans and the tradeoff between grants and loans.
Frank Tenorio, CEO of Guadalupe County Hospital in Santa Rosa, presented an emergency funding request of about $220,000 to cover replacement of an inoperable HVAC system in the facility'9s dental office. Tenorio said the hospital is a rural emergency hospital (REH), that the failing system had caused medication spoilage and equipment damage, and that replacement was underway with an anticipated completion within one to two weeks.
Tenorio told the board the hospital has staggered certificates of deposit (CDs) totaling about $12 million and was prepared to contribute roughly 40% (about $160,000) toward the replacement; he said Medicaid accounts for roughly 30% of the hospital'9s revenue and the hospital is preparing for federal/state payment changes beginning in 2027.
Board members and staff questioned liquidity and alternatives to a grant. Member Paul Cassidy noted the hospital appeared profitable this fiscal year and asked whether the reserves were restricted; Tenorio said the CDs are not restricted but are staggered and reinvested historically. Staff reported that the board'9s emergency balances total approximately $3.3 million in the operating reserve and about $386,568 in a special appropriation.
Following discussion about whether a loan might be preferable to preserve emergency funds, Tenorio said he could proceed without a board loan and requested to withdraw the application. Board staff confirmed they would continue to track the HVAC work and the applicant'9s responsiveness to staff questions.
No board vote was held on the emergency request; staff noted the board has limited emergency funds and that the board regularly receives such requests statewide.
