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CHA News

Budget Hearings Under Way on Health Care Cuts

Two critical hearings will be held this week to address proposed cuts to hospitals and other health care-related areas in Gov. Brown’s revised fiscal year (FY) 2012-13 state budget released last week. The revised budget plan includes deep cuts to California hospitals to help fill the state’s $16 billion budget gap. The revised budget proposes to cut an additional $150 million from private hospitals and $100 million from public hospitals in FY 2012-13. Non-designated public hospitals would be required to convert to a certified public expenditure payment methodology that would save the state $75 million. These cuts are in addition to an $86 million reduction to certain disproportionate-share hospitals included in the January budget. Cuts to hospitals proposed in the budget revision amount to $325 million in FY 2012-13. Additional proposed reductions to hospitals amount to $145 million for FY 2013-14. CHA will testify at the hearing in opposition to these reductions. CHA believes the proposal goes against a 2011 agreement between hospitals and state government that would generate more than $920 million in new money to the state General Fund between July 1, 2011, and Dec. 31, 2013, through the hospital fee program. Hospitals cannot sustain the kinds of cuts in the proposed budget and continue to serve their communities at current levels.