Shuttered CA Hospital Receives Federal Lifeline, But No Funds

Congress restores critical access status for Glenn Medical Center, but the hospital still needs $40-50 million to reopen.

Published on Feb. 14, 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 once reopened. However, the hospital still needs $40 million to $50 million to restart operations and bring back staff. Separately, a California lawmaker has introduced a bill to create state loans for struggling hospitals, which could help Glenn Medical find the necessary funding to reopen.

Why it matters

Glenn Medical Center's closure left a county of 28,000 people without a local emergency room. The restoration of its critical access status is a step in the right direction, but the hospital still faces significant financial hurdles to actually reopen and serve patients. This highlights the ongoing challenges facing rural and community hospitals, many of which are operating on tight budgets and vulnerable to even minor changes.

The details

Congress has passed a law that directs the federal Centers for Medicare and Medicaid Services to waive the distance requirement for any critical access hospital that had this designation as of January 1, 2024 and received a notification of non-compliance before January 1, 2026. This will restore Glenn Medical Center's critical access status, which provides regulatory flexibility and increased reimbursement for Medicare patients. However, the hospital still needs to find $40 million to $50 million to reopen and rehire staff. Separately, a California state lawmaker has introduced a bill to create a new round of $300 million in state loans for struggling hospitals, which could help Glenn Medical access the funding it needs.

  • In the fall of 2025, Glenn Medical Center closed after losing its critical access designation.
  • In late 2025, Democratic Sen. Adam Schiff and the late Republican Rep. Doug LaMalfa introduced efforts in Congress to restore Glenn Medical's critical access designation.
  • On February 14, 2026, the new federal law restoring Glenn Medical's critical access status was signed into law.

The players

Glenn Medical Center

A shuttered hospital in Northern California that is the only hospital in Glenn County. It lost its critical access designation in 2025, leading to its closure, but has now had that status restored by Congress.

Sen. Adam Schiff

A Democratic U.S. Senator who introduced efforts in Congress to restore Glenn Medical Center's critical access designation.

Rep. Doug LaMalfa

A late Republican U.S. Representative who introduced efforts in Congress to restore Glenn Medical Center's critical access designation.

Assemblymember Esmeralda Soria

A Fresno Democrat who introduced a bill in the California state legislature to create a new $300 million loan program for struggling hospitals, which could help Glenn Medical Center find the funding it needs to reopen.

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.

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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

“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

What’s next

If the new state loan program bill introduced by Assemblymember Esmeralda Soria is passed and signed into law, Glenn Medical Center could apply for funding to help cover the estimated $40-50 million needed to reopen the hospital.

The takeaway

The restoration of Glenn Medical Center's critical access status is an important step, but the hospital still faces significant financial hurdles to actually reopen and serve patients. This highlights the ongoing challenges facing rural and community hospitals, many of which are operating on tight budgets and vulnerable to even minor regulatory changes.