Gov. Gavin Newsom (seated) has signed AB 112. He is pictured with, from left, Sen. Anna Cabellero, Assemblymember Eduardo Garcia, Assemblymember Esmeralda Soria and Assemblymember Jim Wood. Photo contributed

Gov. Gavin Newsom on Monday signed AB 112, which establishes a $150 million loan program that is immediately available for California hospitals on the brink of closure.

The no-interest loans would also be available for hospitals that have recently closed, including Madera Community Hospital. The loans could also be subject to forgiveness under certain conditions to be determined by the Department of Health Care Access and Information, which will administer the program.

The legislation — passed under the leadership of Sen. Anna Caballero (D-Merced), Assemblymember Esmeralda Soria (D-Merced) and Assembly Speaker-Designate Robert Rivas (D-Salinas), according to a joint news release — came in response to the December 2022 closure of Madera Community Hospital.

“This new program will help hospitals in extreme financial distress get the assistance they need as quickly as possible,” said Gov. Newsom in a statement. “My administration has been working closely with hospitals across the state, and we will continue to do all we can to ensure communities can continue to access the care and services they need without disruption.”

The program has bipartisan support. Sen. Shannon Grove (R-Bakersfield) released a statement thanking Newsom for this “down payment,” but that she would continue to fight for broader reforms, including increased Medi-Cal reimbursement rates and flexibility with hospital seismic retrofits compliance.

“I want to thank the Governor for responding to my request to provide immediate relief for our local hospitals,” Grove said in a statement. “While this funding will give much-needed help to Kaweah Delta Health and Ridgecrest Community Hospital, there are other hospitals at risk of closing their doors that desperately need assistance.”