SACRAMENTO — Today, Assemblyman Jeff Gonzalez (R-Indio) celebrated the passage of the state budget bill that includes zero-interest loan extensions for financially distressed rural hospitals, including El Centro Regional Medical Center and Palo Verde Hospital in Assembly District 36.
“This isn’t just about numbers on a page—it’s about survival,” said Gonzalez. “For rural communities like mine, these hospitals are lifelines. We’re talking about families who would otherwise have to drive hours just to see a doctor. After recently bringing attention to this matter and highlighting the importance of securing financial assistance, I am thrilled that relief is incoming. With this vote, we’re keeping hospitals open, keeping care local, and standing up for the dignity and health of every Californian—no matter where they live.”
“These hospitals serve vulnerable communities with fewer doctors, more chronic illness, and limited transportation,” Gonzalez added. “They’re the first place people turn to in a crisis and they deserve real support.” He also thanked local healthcare workers and advocates for their tireless efforts, “Every Californian deserves healthcare within reach, no matter their ZIP code.”
To watch Assemblyman Gonzalez’s full remarks, click HERE.
Background:
The budget includes a provision that extends repayment timelines for non-designated public hospitals (NDPHs) that received state loans but are unable to meet the original repayment terms. Under the new provisions:
· Hospitals begin monthly payments 36 months after receiving the loan.
· The full loan must be repaid within 24 months of starting payments.
· No interest will accrue on these loans.
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