Distressed Hospital Loan Program Budget Trailer Bill
The Legislature took early budget action on AB 112, which would establish a distressed hospital loan program substantially similar to AB 412. The trailer bill would immediately appropriate $150 million to provide loans to distressed hospitals meeting specified criteria. The governor signed AB 112 on May 15.
Newborn Hospital Gateway Program Budget Trailer Bill
Support if Amended
The Newborn Hospital Gateway (Gateway) trailer bill proposal would require a hospital to report the birth of a baby by a Medi-Cal mother within 24 hours of the birth event. A significant issue with the 24-hour requirement is that there are many instances where the information that is needed to report to the Gateway would not be available or attainable within that time frame. For instance, for personal or cultural reasons, parents may not even have named their child within 24 hours or chosen which surname will be used. Similarly, if there were complications for a mother or her baby during the birth, it may not be possible to get the information needed to complete the Gateway process within 24 hours. CHA supports the bill if amended to allow hospitals to complete reporting in the Gateway system within 72 hours after the birth event or one business day after discharge, whichever is later.
State Budget Request
CHA continues to advocate for a one-time state budget relief package for struggling hospitals. It would provide emergency funding to mitigate the impacts of rising medical inflation and systematic underfunding in the Medi-Cal system. Assembly Member Soria (D-Merced) and Sen. Caballero (D-Merced) have each submitted letters to their respective budget committees supporting this request. Additionally, stakeholder discussions continue regarding the managed care organization tax to ensure that funding will go to provide long-term fiscal stability for hospitals.