SVMC Applies for $17.35M Distressed Hospital Loan to Strengthen Healthcare Services

Sierra View Medical Center has applied for the Distressed Hospital Loan Program for $17.35 million. The Department of Health Care Access and Information (HCAI) and the California Health Facilities Financing Authority (CHFFA) jointly administer this program. Currently, $300 million in funding is available for hospitals — $150 million was originally allocated to the program in Assembly Bill 112; an additional $150 million was added to the 2023-24 state budget from the managed care organization tax. If SVMC is approved for this interest-free loan, it will help to strengthen operations, enhance staff development, and ensure the continuation of key healthcare services for the local community.

The Distressed Hospital Loan Program offers interest-free cash flow loans to not-for-profit and public hospitals facing significant financial challenges, or to governmental entities representing closed hospitals with the aim of preventing closure or facilitating reopening. Sierra View Medical Center's application is motivated by its commitment to maintaining access to healthcare services for the community and addressing current financial constraints.

"We recognize the importance of sustaining healthcare services for our community,” stated Donna Hefner, CEO and President of Sierra View Medical Center. “The Distressed Hospital Loan would provide crucial financial support to help us continue in the implementation of our comprehensive turnaround plan over the next 18 months. This funding would assist us in the financial losses we have experienced in the last three years due to the pandemic. Additionally, it will also enable us to strengthen our workforce, particularly in nursing, imaging, and laboratory departments, leading to a reduction in contact staffing expenses and continued access to care."

In addition to addressing staffing needs, the loan would also play a pivotal role in supporting Sierra View's Graduate Medical Education Internal Medicine Residency Program, which was implemented three years ago. This initiative reflects SVMC’s dedication to nurturing future healthcare professionals and enhancing medical education in the region.

Sierra View Medical Center remains optimistic about the potential outcome of this application, demonstrating a steadfast commitment to the well-being of the local community. SVMC continues to prioritize strategic initiatives aimed at achieving a fiscally sound facility, ensuring a resilient and sustainable healthcare environment for years to come.