CA SB112

Establishes the Distressed Hospital Loan Program to provide interest-free loans to not-for-profit and public hospitals in financial distress or to entities representing closed hospitals, operating until January 1, 2032.

Authorizes the Department of Health Care Access and Information to administer the program in collaboration with the California Health Facilities Financing Authority, requiring development of a methodology to evaluate hospital eligibility based on financial metrics and regional impact factors.

Creates the Distressed Hospital Loan Program Fund with up to $150 million transferred from the General Fund between fiscal years 2022–23 and 2023–24, with loans beginning repayment after 18 months and requiring full discharge within 72 months, secured by Medi-Cal reimbursements capped at 20 percent withhold.

Requires hospitals receiving loans to submit financial information, viability plans, and independent financial audits; authorizes the department to establish loan forgiveness and modification processes subject to Department of Finance approval.

Modifies hospital data reporting requirements to include commercial coverage payers and quarterly balance sheets detailing assets, liabilities, and net worth.