Sonoma Valley Hospital Receives Funds from California Community Hospital Support Program

September 12, 2023

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August 31, 2023 — Sonoma Valley Hospital has received $3.1 million in a no-interest loan under the Distressed Hospital Loan Program, jointly administered by the California Department of Health Care Access & Information (HCAI) and California Health Facilities Financing Authority (CHFFA).

The program, established through California Assembly Bill 112, offers interest-free, working capital loans to nonprofit and publicly operated hospitals. The loans are repayable over 72 months, with an initial 18-month grace period at the beginning of the loan term.

The Distressed Hospital Loan Program included several key methodologies for determining eligibility for funding, including the healthcare needs of the community as well as a formal plan for how applicants would use the funding. Criteria under ‘Community Need’ speaks directly to our hospital’s rural demographic – medically underserved populations and/or areas, distance to nearest alternative hospital, and predominantly Medi-Cal/Medicare payor mix.

Second, HCAI and CHFFA’s ‘Turnaround Plan’ criteria addresses a key pillar in Sonoma Valley Hospital’s Strategic Plan – Sustainability: Ensuring Our Financial Future. As stated, we successfully demonstrated in our loan program application our ability to further stabilize and secure the hospital financially to meet the growing demands for diverse healthcare services and needs in the community, both in the short and long-term.

Sonoma Valley Hospital CFO, Benjamin Armfield, says, “As a rural community hospital in the heart of Sonoma Valley, we are pleased to be awarded this loan to continue to provide excellent care to our entire community. This loan helps us continue to recover from the challenges faced during the pandemic. The proceeds from this award provides us the opportunity to further reduce some of our existing liabilities which are stalling our growth and delivers working capital that will be utilized to fund strategic initiatives that will expand access to care throughout the Sonoma Valley.”

HCAI Director Elizabeth Landsberg states, “I’m grateful to the Legislature for spearheading this effort to help make sure these vital healthcare institutions are fiscally stable so they can continue to provide quality, affordable health care for all Californians.”