Small and Rural Hospital Relief Program

With funding from the California Electronic Cigarette Excise Tax (Senate Bill 395, Chapter 489, Statutes of 2021), the Department of Health Care Access and Information (HCAI) is launching the Small and Rural Hospital Relief Program (SRHRP) to provide grants for seismic compliance projects. First round of funding projected to be available April 2023.   

The Alfred E. Alquist Hospital Facilities Seismic Safety Act (Health and Safety Code (HSC) Section 129675) requires that hospitals be constructed to remain open and safely provide services to the public after an earthquake. The Small and Rural Hospital Relief Program will administer this new grant program to eligible small, rural, or Critical Access hospitals that have limited funds for seismic safety retrofit requirements. Ten percent of the funds from the California Electronic Cigarette Excise Tax will be allocated to HCAI to fund the new program (HSC Section 130075). The SRHRP supports qualified small, rural and Critical Access hospitals by providing state grant funding and technical assistance to help meet seismic safety standards and preserve access to general acute care for the communities they serve. The program is being developed to assist qualified facilities with technical assistance for development of seismic improvement program planning, project planning and development, and financial grants to apply towards implementing each facility’s unique compliance program. The first step in qualifying for the program will be the application process, which will be used to determine if facilities meet the qualifications as either a small, rural or Critical Access hospital at risk of closure for financial reasons. Program applicants will be required to have current seismic compliance plans and agreed-upon project delivery plans on file with HCAI’s Seismic Compliance Unit prior to acceptance of funding package applications. A process will be employed to optimize use of available funds across all program participants based on need and adherence to approved project schedules.