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California Association of Public Health Care Systems (CAPH) Expresses Disappointment Over California May Budget Revision

OAKLAND, CA—The California Association of Public Hospitals and Health Care Systems (CAPH) recognizes the challenges of the state’s looming budget deficit and the difficult decisions that must be made by the Administration and Legislature in the coming months. Public health care hospitals and health systems are also facing mounting financial pressures, while they continue to try to meet an increasing demand for services.

At the same time, we are disappointed in the removal of provider rate increases funded by the Managed Care Organization (MCO) tax in the California May Budget Revision. The elimination of this funding and other cuts to health care and safety net programs presents setbacks for the health care safety net and marginalized communities across the state.

“We are concerned that MCO tax revenue that was to be used for Medi-Cal provider rate increases is being cut,” said CAPH President and CEO, Erica Murray. “The proposed cuts delay much needed support for our public health care systems that are already dealing with low Medi-Cal rates and a staggering $4 billion deficit. These cuts could jeopardize access to health care for millions of Californians.”

In addition to eliminating future MCO tax rate increases, the revised budget removes funding for other programs important to public health care systems and the communities they serve. These cuts include healthcare workforce funding; public health workforce and infrastructure investments; Equity and Practice Transformation Payments, and In-Home Supportive Services for individuals in state-only Medi-Cal.

CAPH looks forward to working with the Administration and Legislature to expand access to health care and ensure public hospitals and health systems can continue to serve their communities.


About the California Association of Public Hospitals and Health Systems
The California Association of Public Hospitals and Health Systems (CAPH) is the trade association representing the 21 county-affiliated and University of California academic medical centers. For more information, visit www.caph.org.

Media Contact:
Claudia Coons
(510) 410-3088