Assemblywoman Soria Introduces AB 412, Bill to Create Hospital Emergency Loan Program
SACRAMENTO – Assemblywoman Esmeralda Soria announced AB 412 on February 2, 2023, to address the closure of Madera Community Hospital.
AB 412 establishes the Hospital Emergency Loan Program, administered by the California Health Facilities Financing, for the purpose of providing emergency loans to hospitals that have already closed and are attempting to re-open, or are at high risk of closure.
The introduction of this high-priority bill within Assemblywoman Soria’s legislative package comes after the closure of Madera Community Hospital, an essential healthcare and emergency care facility serving the residents of Madera and neighboring towns in Assembly District 27. This hospital closure left tens of thousands of low-income community members in the position of having to travel nearly an hour to seek treatment for emergency services – something no community should ever have to face.
Unfortunately, the closure of Madera Community Hospital is not an isolated incident, as hospitals across the state have been experiencing financial woes, which were aggravated by the COVID-19 pandemic. Financial challenges have affected many hospitals serving mostly Medi-Cal patients, as these hospitals face lower reimbursement rates compared to hospitals with higher rates of privately insured patients.
"It is critical that all communities have access to healthcare and emergency care services,” said Assemblywoman Soria. “This issue of hospital closures deserves our immediate attention."
AB 412 has been amended and is has been referred to the Assembly Health Committee.