Budget Agreement Delivers $250M for Public Hospital Systems, Paving the Way for Long-Term Solutions
(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 inclusion of $250 million in the final state budget agreement to help California’s 17 public hospital systems facing nearly $4 billion in annual losses. Nearly $3 billion comes from federal health care cuts imposed by H.R. 1, or the so-called One Big Beautiful Bill Act, along with close to $800 million in state cuts to Medi-Cal reimbursements adopted in this state budget.
Katie Rodriguez, Interim President and CEO of CAPH:
“Public hospital systems are the backbone of health care in this state and we are grateful for this important financial lifeline to help keep our doors open this year. We thank Governor Newsom, Assembly Speaker Robert Rivas and Senate President pro Tempore Monique Límon for taking action to soften the destabilizing effects of H.R. 1. We also greatly appreciate Assemblymember Patrick Ahrens (D-Silicon Valley) whose leadership paved the way for public hospital systems to receive support in the state budget. We remain deeply concerned with the impacts of H.R. 1 and this long-term challenge will subject public hospital systems to continued instability, along with the patients who depend on us. These negotiations have highlighted the challenges facing public hospital systems and the important work we provide to communities across California, creating the political will to act. That’s what we urgently need from Sacramento. We hope to enact a long-term solution next year, so that we can continue our mission of providing health care to millions of patients regardless of coverage or ability to pay.”
Riko Mendez, Chief Elected Officer, SEIU Local 521:
“Essential health care infrastructure and its workers need state support to survive the health care crisis caused by H.R. 1. On behalf of tens of thousands of public hospital frontline service providers across the state, we thank California’s leaders for standing up and fighting to preserve health care access. The fight to save public hospitals from H.R. 1 isn’t over. State leaders must ensure California cares for its people by keeping the doors of public hospitals open. Public hospitals are the backbone of health care in this state, caring for people regardless of their ability to pay and regardless of whether they have coverage. The ability to continue this mission-driven work is critical to the entire health care system functioning for all of us. The health of millions of Californians is on the line and every single elected official in California must take this seriously.”