Assembly Budget Includes Vital Funds for Public Hospital Systems but More is Needed to Stabilize Operations, Preserve Health Care Access
(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 Assembly’s inclusion of $250 million in its state budget plan as an initial step to help California’s 17 public hospital systems that face nearly $3 billion in annual losses from the implementation of H.R. 1.
Katie Rodriguez, Interim President and CEO of CAPH:
“Public hospital systems and the millions of patients who rely on us urgently need help to weather the destabilizing effects of H.R. 1. We are thankful to see the Assembly recognize our need for these critical resources and for the leadership Assemblymember Patrick Ahrens (D-Silicon Valley) provided to secure them.
“The Assembly proposal is a solid first step in recognizing the challenges public hospital systems face that far exceed the funding we seek, as H.R. 1 impacts begin and grow substantially over time. Since the Assembly proposal includes only half of the $500 million needed this year, CAPH looks forward to working with lawmakers and Governor Newsom to ensure a final budget agreement provides the funds for the entire amount.
“This is a preventable health care crisis and it’s time for the state to support public hospital systems as the backbone of health care in California. We operate 67 percent of California’s burn beds, 32 percent of its inpatient psychiatric beds, and 15 percent of neonatal intensive care unit beds. We also train nearly half of the state’s new doctors in hospitals. 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 cutting these life-saving services. If we are forced to cut services, they disappear because there is no one waiting in the wings to fill the gap. We know where this scenario leads: more preventable illness and death, longer wait times and commutes to get care, and higher costs we all pay.”
Riko Mendez, Chief Elected Officer, SEIU Local 521:
“SEIU in California represents tens of thousands of public hospital frontline service providers across the state. We welcome today’s Assembly budget proposal, which includes $250 million for public hospitals — and we thank Assembly members for recognizing the urgency of this crisis. But let’s be clear: $250 million is only half of what’s needed to save lives and protect care in the communities we serve. We are calling on the Governor and the State Senate to step up and match that commitment, because nothing less than a full $500 million investment will stabilize our health care system.
“Public hospital systems are the backbone of health care in California. We are mission-driven — we care for people regardless of their ability to pay, regardless of whether they have coverage. Our ability to serve the most vulnerable — children, the elderly, the unhoused — is critical to the entire system functioning. Whether you have private insurance or you’re on Medi-Cal, this matters to you.
“The Assembly has shown leadership today. Now the Governor and the State Senate need to get on board. Every single elected official in California must take this seriously — half measures are not enough when the health of millions of Californians is on the line.”