California approves $25 million emergency hospital grants for fiscal year start

California lawmakers have approved a $25 million emergency grant program intended to keep public and nonprofit hospitals financially afloat while the state moves into a new fiscal year on July 1, but the fast-track legislation has also prompted concerns about how hospitals will qualify and whether the money will be enough to avert closures.

Assembly Bill 108 was signed by Gov. Gavin Newsom after being introduced on May 4 and moving through both legislative chambers in three days. The measure sets eligibility criteria that include having fewer than 10 days of cash on hand and having more than half of patients on government-funded insurance programs or who are uninsured. Sen. John Laird, who chairs the Senate Budget Committee and championed the bill, said the grants are meant to tide eligible hospitals over until July 1.

The program was up and running shortly after the bill became law, leaving hospitals only about a week to submit applications. The state Department of Health Care Access and Information is scheduled to announce recipients on May 26. Hospital advocates and administrators said they were encouraged by the Legislature’s speed, though some said they had limited time to...