Emergency Fund Hits $24 Million for Loans for California Clinics
On Wednesday, the California HealthCare Foundation announced that it will contribute $10 million to an emergency fund that provides low-interest loans to clinics being hit by a Medi-Cal payment freeze, the East Bay Business Times reports. Medi-Cal is California's Medicaid program.
Medi-Cal payments are on hold until a state budget is approved. The last payments to clinics were made at the end of July.
With the contribution from CHCF, the fund now stands at about $24 million. Other donors to the fund include:
- California Primary Care Association Loan Fund;
- Catholic Healthcare West,
- Mercy Partnership Fund;
- The Nonprofit Finance Fund;
- NCB Capital Impact, which also is administering the loans; and
- Sutter Health.
So far, 26 clinics have applied for loans from the funds.
On Thursday, a loan committee will meet to review 17 applications, according to Kim Dempsey, a business development officer with NCB. She said six more applications are in the underwriting process.
Funds could be disbursed as early as Aug. 12 (Hogarth, East Bay Business Times, 8/6).
Loan applications are available on NCB's Web site (Peyton Dahlberg, Sacramento Bee, 8/7).
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