Affordability

About Affordability

Health care is a basic human need, one that Californians rely on to live, grow, and prosper. Unfortunately, the cost of care has become too high for many working families. For years, California’s hospitals have made headway toward controlling costs. To ensure care for every Californian, the entire health care field must tighten its belt — insurance companies, physicians, labor unions, hospitals, pharmaceutical companies, and more. California’s hospitals stand ready to tackle this challenge through engagement with the Office of Health Care Affordability

New Report Shows Patients Served by One in Five California Hospitals Are at Risk of Losing Their Hospital Due to Closure

SACRAMENTO (April 12, 2023) — The latest report from national health care management consulting firm Kaufman Hall shows that one in five California hospitals — dozens throughout the state — is at risk of closure. Hospitals have faced a perfect storm of COVID-related losses, crippling inflation, and systemic underfunding by government payers — Medi-Cal and […]

Governor’s 2023-24 Budget Proposal Neglects to Meet Urgent Need for Support for Patients, Hospitals

“California’s hospitals commend Gov. Newsom for his ongoing commitment to increasing access to health care in his proposed January budget, despite the state facing a more than $22 billion budget shortfall,” said Carmela Coyle, President & CEO of the California Hospital Association. “The budget also must support the health care providers who care for patients day […]

Office of Health Care Affordability Will Play Key Role in California’s Health Care Future

In early July, Gov. Gavin Newsom signed legislation establishing the Office of Health Care Affordability, a new, far-reaching agency that will hold significant sway over how health care is paid for and delivered in California in the future. Following his signature, California became the 10th state in the nation to have state agencies or oversight that establish targets for health care cost growth.  

State Budget Takes a Wide Variety of Health Care-Related Actions 

In June 2022, the Legislature and governor approved a $308 billion budget for the state fiscal year spanning from July 2022 through June 2023. In late August, the Legislature passed and the governor is expected to approve revisions to the 2022-23 Budget Act, which generally redirect, build upon, or provide statutory parameters around actions previously taken.