April 8, 2011 > Contra Costa agrees to loan hospital $10M
Contra Costa agrees to loan hospital $10M
Submitted By AP Wire Service
SAN PABLO, Calif. (AP), Apr 06 _ Contra Costa County supervisors are loaning a struggling hospital $10 million to keep its doors open.
The Contra Costa Times reports that the supervisors agreed unanimously on Tuesday to provide the advance to Doctors Medical Center in San Pablo. But they warned hospital officials that they need to come up with a plan to solve their budget problems and should not expect cash from the county every few years.
County officials also gave the 247-bed hospital a $10 million loan in 2006 after it declared bankruptcy. The hospital has repaid that loan with $1.5 million in interest although it is still struggling financially.
Interim hospital CEO Dawn Gideon said the county loan will be used to attract up to an additional $10 million in federal funding.
Information from: Contra Costa Times, http://www.contracostatimes.com