-May 5,2023-
VISALIA, CA – This week, state lawmakers announced the passage of SB/AB 112, approved in both the Senate and Assembly. The bill creates the Distressed Hospital Loan Program, which will provide $150 million in emergency hospital funding in the form of interest-free loans to not-for-profit or public hospitals in financial distress. The funds could be available as soon as May 5, 2023.
Funds would be available to governmental entities representing a closed hospital to prevent the closure or facilitate the reopening of a closed hospital
“We are grateful for the passing of SB/AB 112 by our legislators and the emergency funding it provides,” said Kaweah Health CEO Gary Herbst. “Hospitals like Kaweah Health with high Medi-Cal rates suffered some of the biggest losses in the state. This funding is an important step in keeping hospitals open and helping them get back on their feet. We look forward to the future work of our legislators to bring long-term support in the form of higher Medi-Cal reimbursement rates.”
After unprecedented losses during and following the COVID-19 pandemic, Kaweah Health enacted wide-ranging, cost cutting activities in September 2022, resulting in a steady return toward profitability. While Kaweah Health is expecting to finish the fiscal year ending June 30, 2023 in the red, it is anticipating that the last quarter of the year will be close to break-even.
A week ago we reported that Kaweah Health‘s financial goal to get “Back in the Black” has now shown positive results in March says the latest report to the board. The health care district has suffered red ink for months but in March the district increased revenue and cut costs. The healthcare district reported a $4.7 million positive margin in March.Red ink this fiscal year has been more than $35 million.Now there is hope for a turnaround.
State funding is is likely to be made to other district hospitals in the county who are also facing a similar crisis. That includes Tulare and Porterville.