Media Statement

California Hospitals: Revised State Budget Proposes Important Health Care Investments but Does Not Address Hospitals’ Inflationary Challenges

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“In his revised state budget proposal, Gov. Newsom recommends a variety of important health care investments,” said Carmela Coyle, President & CEO of the California Hospital Association. “These include funds for additional COVID-19 tests, vaccines, and contingency staffing; health care workforce development; health information exchange infrastructure; and to address child and youth behavioral health needs.” 

“CHA looks forward to more information about Gov. Newsom’s proposal to provide health care workers retention pay, as hospitals and other providers work to rebuild and support the ranks of these essential employees,” Coyle said. “The impacts of the COVID-19 pandemic are continuing to strain hospitals’ ability to provide care, with nearly all grappling with a severe shortage of workers.” 

“CHA will continue to have discussions with the administration and the Legislature to address inflation relief for California’s hospitals, which was not included in this revised budget,” Coyle said. “Specifically, hospitals need relief from increasingly costly and impossible-to-meet seismic building requirements, and increased Medi-Cal reimbursement for those safety-net facilities serving California’s most vulnerable patients and communities.” 

“California’s hospitals have lost more than $20 billion during the COVID-19 pandemic,” Coyle said, “with more than half of all facilities currently operating in the red. As the Legislature finalizes its budget plan over the next month, CHA urges lawmakers to recognize and address the unprecedented financial challenges facing California’s hospitals.”