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

Glenn Medical Center must find $40-$50 million to restart operations and bring back staff after losing critical access status.

Published on Feb. 16, 2026

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A shuttered Northern California hospital, Glenn Medical Center, is getting a lifeline from Congress by restoring its 'critical access' designation, which qualifies it for full Medicare reimbursement. However, the hospital still needs $40 million to $50 million to actually reopen and serve patients in Glenn County. Separately, a new California bill aims to create state loans for struggling hospitals like Glenn Medical to help them 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. Restoring the hospital's critical access status is an important first step, but significant funding is still required to actually reopen the facility and resume services for the community.

The details

Glenn Medical Center lost its critical access designation from the Centers for Medicare and Medicaid Services because it was deemed to be only 32 miles from the next closest hospital, rather than the required 35 miles. The hospital appealed but was unsuccessful, leading to its closure last fall. A new federal law will now waive the distance requirement, allowing Glenn Medical to regain its critical access status. However, the hospital still needs substantial funding, estimated at $40 million to $50 million, to recruit staff and restart operations.

  • Glenn Medical Center closed in the fall of 2025.
  • In late 2025, Congress passed a law restoring the hospital's critical access designation.
  • In February 2026, a California lawmaker introduced a bill to create state loans for struggling hospitals like Glenn Medical.

The players

Glenn Medical Center

The only hospital in Glenn County, California, which closed in 2025 after losing its critical access designation from the Centers for Medicare and Medicaid Services.

American Advanced Management

The company that owns and operates Glenn Medical Center, as well as Madera Community Hospital, another rural California hospital that recently reopened with the help of state funding.

Assemblymember Esmeralda Soria

A California lawmaker who introduced a bill in 2026 to create a new round of $300 million in state loans for struggling hospitals.

Glenn Melnick

A health economist at the University of Southern California who comments on the challenges facing rural and community hospitals.

Sen. Adam Schiff

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

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What they’re saying

“Returning the [critical access] designation is a great step, but it doesn't solve the problem.”

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

“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 at USC (dnyuz.com)

What’s next

If the new California bill introduced by Assemblymember Esmeralda Soria is passed and signed into law, Glenn Medical Center could apply for state loans to help fund the $40 million to $50 million needed to reopen the hospital.

The takeaway

The closure of Glenn Medical Center, the only hospital in Glenn County, highlights the ongoing challenges facing rural and community hospitals across the country. While the restoration of the hospital's critical access status is a positive step, significant funding is still required to actually reopen the facility and resume services for the local population.