Loan approved to help reopen Madera Community Hospital

MADERA, Calif. (KFSN) -- After more than a year, the shuttered Madera Community Hospital could reopen by the end of the year.

Monday, the state of California approved American Advanced Management's (AAM) request to take over the hospital.

It also approved a $57-million no-interest loan to help reopen the doors.

I think this gets us a step closer. I am excited and optimistic about the future of Madera," said Assemblymember Esmeralda Soria.

Soria and State Senator Anna Caballero have been involved in getting the hospital reopened since it first closed in December of 2022.

The closure has forced people across Madera County to seek healthcare in Fresno and Merced counties.

AAM said in February that it hoped to have the hospital open in July.

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"Essentially, they're in the driver's seat at this point. They're going to be the operators of the hospital. Their management will operate the hospital as well as all the hiring decisions," explained Madera County Supervisor Robert Poythress.

Poythress says it could start with a small operation in July and expand as adequate staff gets hired.

Much of the equipment is still in the hospital and has been maintained by the county, along with the air handlers and boilers to ensure operations can resume as soon as possible.

"That was really critical during this whole process because if the air handlers were ever turned off, as well as the boilers, this could process be delayed by at least a year," said Poythress.

This doesn't mean the hospital will reopen overnight though.

"There is more work to be done. We've got to make sure the hospital is able to attract back physicians, healthcare workers, nurses, line staff. that's going to take time," Soria said.

According to the Distressed Hospital Loan Program, the $57 million no-interest loan must be repaid over 72-months.

The repayment is to start a year-and a half after the start of the loan term.

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