The CHA Board of Trustees met last week and engaged in an important conversation about health care affordability and the role hospitals could play in shaping this discussion at the state and federal levels. The board concluded that hospitals need to take a leadership role in contributing to an affordability solution, and directed CHA to work with legislative and regulatory leaders, as well as other stakeholders, to explore comprehensive alternatives that go further than simply reducing reimbursement.
The board also discussed the 2030 hospital seismic standards and the impact these will have on affordability. The RAND Corporation’s March 29 study, Updating the Costs of Compliance for California’s Hospital Seismic Safety, estimates the cost of complying with the 2030 standard to be anywhere from $34 to $142 billion, depending on the compliance strategy adopted by hospitals, with financing doubling the final cost. CHA is actively working on a legislative solution to refocus the mandate on the availability of emergency services, while also providing exemptions for hospitals in low seismic risk areas and extending the deadline for financial hardship.
The board received reports outlining the status of key state legislative and public policy priorities, as well as federal legislative and regulatory updates.
Finally, Chair Calvin Knight, President and CEO, John Muir Health, stressed the importance of contributing to the California Hospital Association’s Political Action Committee (CHPAC) and meeting CHPAC hospital campaign goals.