North Dakota CAH Stabilizes Finances with $5M State-Backed Emergency Loan
Jacobson Memorial Hospital Care Center, a critical access hospital in Elgin, N.D., has improved its financial position after securing a $5 million emergency loan from the state-owned Bank of North Dakota. The loan was approved in early April 2026, following a period where the hospital was reportedly at risk of being unable to meet payroll.
The North Dakota Legislature authorized the loan during a special session in January 2026. The measure was introduced by Sen. Don Schaible to provide the hospital with a bridge loan to restructure its finances. The loan carries a 2% interest rate with an 11-year repayment term; the first year is interest-only to allow the hospital time to implement its new business plan.
The hospital has used $4 million of the loan to pay off a line of credit with First International Bank and settle debts with vendors. The remaining funds are intended to build a 30-day cash reserve. The loan followed the termination of the hospital's previous CEO in November 2025 and the implementation of operational reforms and cost-cutting measures by new leadership.
According to board chairman Matt Hager, the hospital achieved positive cash flow in the first three months of 2026 and is on track for sustained positive cash flow by the end of the year. The turnaround strategy was developed after a pro bono independent financial assessment.