Assemblymember Eduardo Garcia’s Legislative Efforts Deliver $64.5 M in Critical Distressed Hospital Loan Relief

El Centro Regional Medical Center, Pioneers Memorial Healthcare District, and Palo Verde Hospital Receive State Financial Support

AB 112 Distressed Hospital Loan Program Bill Signing Ceremony

(Sacramento, CA) —Assemblymember Eduardo Garcia (D-Coachella) and Assemblymember Esmeralda Soria’s (D-Merced) AB 112, legislation establishing the Distressed Hospital Loan Program, will deliver $64.5 million in zero-interest loans for local hospitals experiencing extreme financial distress. As hospitals across California struggle to keep their doors open, the Legislature and Governor took swift legislative and budget actions to provide urgent financial relief.  


“The Distressed Hospital Loan Program extends a lifeline to economically underserved hospitals, like those in our rural area, struggling to keep their doors open. We are grateful that our legislative efforts have delivered resources to protect access to emergency healthcare services in our district and help save lives,” said Assemblymember Eduardo Garcia.


“We stepped up to create the Distressed Hospital Loan Program to ensure an eligible source of relief for our community’s urgent healthcare crisis. In partnership with the Governor and Legislators in districts experiencing similar challenges, we moved quickly to provide aid and prevent closures in underserved areas. We welcome this loan announcement as we continue other legislative initiatives underway to protect and improve access to medical care.”


Assembly District 36 Hospitals Receiving Support:

  • El Centro Regional Medical Center $28,000,000
  • Pioneers Memorial Healthcare District $28,000,000
  • Palo Verde Hospital $8,500,000


This loan announcement comes as regional efforts to create one united, integrated Imperial Valley healthcare district approaches the legislative finish line. AB 918 will allow Imperial County to consolidate and coordinate medical services to improve healthcare access and cost-saving benefits for residents.


For additional information regarding the Distressed Hospital Loan Program, please see Governor Newsom’s announcement and the Department of Health Care Access and Information’s release.