Photo of Madera Community Hospital's emergency department in 2021 by Breanna Hardy.

Madera Community Hospital could reopen as soon as September or October with news this week that the first disbursement of a $57 million emergency loan has been made.

Karen Paolinelli, CEO of Madera Community Hospital, said in a statement Tuesday that the first installment of $15 million from the state Distressed Hospital Loan Program will be used for capital improvements such as updating patient equipment and operational expensive including hiring and training.

“The facility is being prepared as we speak. Significant investments have already been made in updating the facility and we are very excited for the community to see the improvements soon,” Paolinelli said.

“This would mean all improvements are completed, all licenses and permits awarded, and the workforce hired and trained,” Paolinelli added about what must happen before reopening.

A bankruptcy judge approved a plan in February for Modesto-based American Advanced Management, Inc. to operate the hospital.

The loan for the hospital was approved in April, made possible by legislative efforts from Assemblywoman Esmeralda Soria (D-Fresno) and Sen. Anna Caballero (D-Merced).

California State Treasurer Fiona Ma said in a statement Tuesday that the program has loaned almost $300 million to 16 California hospitals to date, including nearly $21 million for Kaweah Health in Visalia.

“Madera Community Hospital is a critical part of the continuum of healthcare in the Madera community – it has traditionally seen some of the highest patient volumes in the area and is vitally important to anyone who depends on its health care and life saving services,” said Treasurer Ma, chair of CHFFA. “Over the past year, my team has been dedicated to working to distribute these loan funds, enabling them to serve patients once again.”

Additional installments of the zero-interest loan will be issued as the hospital shows a cashflow need as part of its larger reopening and turnaround plan, Ma added.

Madera Community Hospital has been closed since January 2023.