Public Hospital Systems and SEIU Comment on Senate Budget Plan
(OAKLAND, CA) – Katie Rodriguez, Interim President and CEO of the California Association of Public Hospitals and Health Systems (CAPH), and Riko Mendez, Chief Elected Officer of SEIU Local 521, released the following statements in response to the State Senate’s release of a state budget plan.
Katie Rodriguez, Interim President and CEO of CAPH:
“We appreciate the Senate’s proposal to soften the destabilizing effects of H.R. 1 on Medi-Cal, notably we support the proposal to delay reimbursement reductions for clinics serving immigrant populations. Yet, this plan provides minimal relief for California’s public hospital systems. We face nearly $3 billion in annual losses from the impacts of H.R. 1 plus another $800 million in reduced reimbursement rates for care provided to immigrants through Medi-Cal. As the providers of over a third of Medi-Cal and uninsured care, public hospital systems are the backbone of California’s health care safety net. Yet, the needs of the millions of patients depending on us is not being sufficiently addressed as we stare down a preventable health care crisis.
“Public hospital systems urgently need support. No matter how well run, how lean or how committed its staff, no hospital system can absorb billions of dollars in losses each year without stark cuts to services. If we are forced to cut services, there is no one waiting to fill the gap. No other hospital will open a unit to treat burns or provide neonatal intensive care because public funding dried up. California’s 17 public hospital systems urge state leaders to include $500 million in the final state budget agreement. We look forward to working with the Governor and lawmakers to take this initial step to stabilize our operations and protect access to health care for the 3.7 million patients who depend on us.”
Riko Mendez, Chief Elected Officer, SEIU Local 521:
“SEIU in California represents many tens of thousands of public hospital front line service providers across the state. We are demanding of our state legislature and our governor a critical, $500M investment to stabilize our health care system. The reason is that the public hospital systems bolster up all health care in the entire state of California. And on top of it, we are mission driven. What that means is we care for people, regardless of their ability to pay, regardless if they have health care coverage or not. So our ability to absorb that population, very vulnerable people, children, elderly, and unhoused is critical to the entire system functioning appropriately. So whether you have private pay insurance or you’re on Medi-Cal, this matters to all of us. So every single state legislator in the state of California needs to be taking this seriously.”