Newsom vetoes St. Rose Hospital loan forgiveness bill

Opposition to Price recall receives a major financial lifeline; State Senate candidate receives campaign contribution from perhaps the most hated man in the East Bay

COUNTY NEWS

HEALTH CARE

—NOW WHAT?—The future of St. Rose Hospital, a pivotal safety net health care facility in Hayward, is in serious doubt after Gov. Gavin Newsom vetoed legislation on Sunday that was viewed by local officials as a lifeline to keep the struggling hospital afloat.

—Newsom’s veto is a blow to the effort by Alameda Health System to take over operation of St. Rose Hospital.

—Assembly Bill 2271, legislation authored by East Bay Assemblymember Liz Ortega sought forgiveness of a $17.65 million interest-free loan the hospital received in 2023 from the state’s Distressed Hospital Loan Program.

—The state Department of Health Care Access and Information, which oversees the loan program, is currently finalizing a process that allows distressed hospitals to seek loan forgiveness.

—Its guidelines are due for release at the end of the year, Newsom wrote in the veto message. “I encourage St. Rose Hospital to pursue loan forgiveness through this path.”

—Newsom added that 15 other distressed hospitals also received the interest-free loan from the state.

—Allowing legislation to circumvent the forthcoming loan forgiveness process “unfairly advantages St. Rose and sets a precedent for the remaining 15 hospitals that received loans.” [MORE INSIDE]

Pivotal East Bay safety net hospital is again teetering on the edge

A legislative lifeline for St. Rose Hospital

—411 ON THE 510—There’s much more inside! Become an East Bay Insiders subscriber today and get full access to the inside scoop every weekday morning at 6 a.m. It’s what the insiders read.