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California Association of Public Hospitals and Health Systems Issue Statement on Governor Newsom’s 2023-2024 Revised Budget Proposal

Oakland, CA – Erica Murray, President and CEO, California Association of Public Hospitals and Health Systems (CAPH) issued the following statement in response to Governor Newsom’s May Revision:

“California’s 21 public health care systems are grateful that the Governor’s May Revision Budget has taken steps to protect Medi-Cal and the children, families and seniors who depend on it. We applaud the preservation of the Medi-Cal coverage expansion and the inclusion of a Managed Care Organization tax (MCO).

“A consistent, ongoing state funding source through the MCO tax is needed to help address the financial challenges public health systems are facing.  As proposed, the MCO tax is not enough to avoid potential reductions in services at public health systems for our patients, most of whom rely on Medi-Cal or remain uninsured.

“Our systems face a looming fiscal reckoning, brought on by decades of insufficient funding and rising costs. Public health system funding needs to be stabilized and prioritized so that already-disadvantaged Californians can continue to access critical health services.

“CAPH looks forward to working with the Administration and Legislature to ensure public health systems can continue to serve as California’s health care safety net. “


Statement Attributable to:
Erica Murray
President and CEO, CAPH