California County's Only Hospital Clears Federal Hurdle, Still Needs Millions to Reopen

Glenn Medical Center in Glenn County qualifies for full Medicare reimbursement, but requires $40-50 million to restart operations.

Published on Feb. 16, 2026

Got story updates? Submit your updates here. ›

A shuttered Northern California hospital, Glenn Medical Center, is getting a lifeline from Congress after a new federal law restored its 'critical access' designation. However, the hospital still needs $40 million to $50 million to actually reopen and serve patients in Glenn County. Separately, a California lawmaker has introduced a bill to create state loans for struggling hospitals, which could help Glenn Medical find the necessary funding.

Why it matters

The closure of Glenn Medical Center, the only hospital in Glenn County, left a population of 28,000 people without a local emergency room. The restoration of the hospital's critical access status is an important step, but significant funding is still required to bring the facility back online and restore healthcare access for the community.

The details

Glenn Medical Center lost its critical access designation because it was deemed to be only 32 miles from the next closest hospital, rather than the required 35 miles. Hospital officials appealed but were unsuccessful, leading to the facility's closure last fall. The critical access designation provides regulatory flexibility and increased Medicare reimbursement, which is crucial for the hospital's financial viability. Without this revenue, operations at Glenn Medical would be unsustainable.

  • Glenn Medical Center closed in the fall of 2025.
  • In February 2026, a new federal law was signed that restores the hospital's critical access designation.
  • Last week, a California lawmaker introduced a bill to create state loans for struggling hospitals, which could help Glenn Medical find the funding it needs to reopen.

The players

Glenn Medical Center

The only hospital in Glenn County, California, which closed in 2025 after losing its critical access designation from the federal government.

Glenn Melnick

A health economist at the University of Southern California who says the federal government should provide funds for Glenn Medical Center's reopening since a federal decision led to its closure.

Sen. Adam Schiff

A California Democratic senator who introduced efforts in Congress to restore Glenn Medical Center's critical access designation.

Rep. Doug LaMalfa

A late Republican congressman from California who introduced efforts in Congress to restore Glenn Medical Center's critical access designation.

Assemblymember Esmeralda Soria

A California Democratic state legislator who introduced a bill to create a new round of $300 million in state loans for struggling hospitals, which could help Glenn Medical Center.

Got photos? Submit your photos here. ›

What they’re saying

“In an ideal world this [congressional] bill would have restored their status and made them whole, right? But failing that, you're gonna have to look to the state.”

— Glenn Melnick, Health economist, University of Southern California (latimes.com)

“Returning the [critical access] designation is a great step, but it doesn't solve the problem. We're trying to be realistic about how much money it will take to reopen because it will take significant recruitment efforts.”

— Matthew Beehler, Spokesperson, American Advanced Management (latimes.com)

“Realistically we would have to find funding from the state like Madera did. As we've seen in Madera...we need to cover about a year's worth of expenses before you get reimbursements.”

— Matthew Beehler, Spokesperson, American Advanced Management (latimes.com)

What’s next

If the state bill introduced by Assemblymember Esmeralda Soria is passed and signed into law, Glenn Medical Center could then apply for the $300 million in state loans to help fund its reopening.

The takeaway

The restoration of Glenn Medical Center's critical access designation is an important step, but significant funding is still required to reopen the hospital and restore healthcare access for the 28,000 residents of Glenn County. This case highlights the financial challenges facing rural and independent hospitals, and the need for both federal and state support to ensure these facilities can continue serving their communities.