Distressed Hospital Grant is a grant from the Washington State Health Care Authority (HCA) under the Hospital Safety Net Assessment Program that funds financially distressed hospitals serving Medicaid enrollees in Washington State. The program distributes funds from a $10 million annual pool to help eligible hospitals address financial challenges and maintain services for Medicaid patients.

Eligible applicants are individual Washington State hospitals that are not part of hospital systems with three or more facilities and that actively serve Medicaid enrollees. Funds are contingent on federal approval and will not be distributed until CMS requirements are met. The 2026 application deadline was March 8, 2026.

The Washington State Hospital Association provides application resources and guidance to prospective applicants.

Distressed Hospital Grant applications are now open | Washington State Hospital Association Washington Hospital Services New Law Implementation Guide Hospitals for a Healthy Future PAC Washington Hospital Services New Law Implementation Guide Hospitals for a Healthy Future PAC Home / News & Events / Newsletters / Weekly Report / Distressed Hospital Grant applications are now open Distressed Hospital Grant applications are now open The Health Care Authority released the Distressed Hospital Grant application.

You can view and apply for the grant here . Grant applications are due March 8. However, funds will not be distributed until the (Centers for Medicare and Medicaid Services) CMS approves Washington’s SNAP application, as the assessment funds the grants.

We are hopeful that approval will come in March or April. WSHA lobbied the Washington State Legislature to create this $10 million annual fund as part of the Hospital Safety Net Assessment Program (SNAP). The Distressed Hospital Grant prioritizes hospitals with significant financial distress and hospitals that serve a significant population of Medicaid enrollees.

Applicants must provide the amount of funds being requested and how the funds will be used. Applicants must demonstrate financial hardship through at least one of the following criteria: days cash on hand of 60 days or fewer; the hospital income statement showing a negative net income during the prior or current hospital fiscal year; or evidence the hospital is at risk of bankruptcy.

Applicants must also demonstrate efforts to emerge from financial hardship by providing a written financial stability plan. This can be short and/or be documents that you already have, such your strategic plan or a financial turnaround plan. In the past, some applicants have been reluctant to apply because they did not feel they had an extensive long-term financial stability plan.

HCA has stated it is not looking for a long or formal plan, but rather wants to understand steps being taken or planned to achieve financial stability. We hope that this requirement will not discourage eligible hospitals from applying.

Eligible hospitals cannot be part of a system of three or more hospitals, must serve individuals enrolled in state and federal medical assistance programs, and must commit to continuing to provide services to Medicaid enrollees for at least the next hospital fiscal year. We are very pleased to be part of making this resource available to you. Please direct your questions to Eric Lewis ( [email protected] ) or Andrew Busz ().