CA AB412

Creates the Distressed Hospital Loan Program to provide interest-free loans to not-for-profit and public hospitals in financial distress, or to governmental entities representing closed hospitals, to prevent closures or facilitate reopenings until January 1, 2032.

Establishes that hospitals with 90 or fewer days cash on hand and negative operating margins over the preceding 12 months are immediately eligible for assistance, regardless of other eligibility criteria.

Requires hospitals to begin monthly loan repayments after 18 months and repay within 72 months, with security based on Medi-Cal reimbursements capped at 20 percent withholding until loan satisfaction.

Creates the Distressed Hospital Loan Program Fund as a continuously appropriated fund administered by the Department of Health Care Access and Information, with up to 5 percent of funds available for administrative costs.

Expands hospital financial reporting requirements to include commercial coverage payers in revenue data and requires quarterly balance sheet submissions detailing assets, liabilities, and net worth.