Through the end of this month, hospitals have a brief window to elevate their voices on two critical issues that could be decided in a matter of weeks.
The first is related to a proposal being considered by the Office of Health Care Affordability that would assess exorbitant penalties on hospitals that exceed the 3.5% spending target goal. In some cases, these penalties could be in the hundreds of millions of dollars for even a single-year violation — penalties would start at the amount by which hospitals exceeded their spending cap, eviscerating hospital finances.
These penalties would be disastrous for hospitals’ ability to care for patients, and OHCA has a legal duty to protect access to care as it promotes improved affordability.
CHA has been challenging nearly every aspect of this deeply flawed proposal — including in a hard-hitting letter sent in May — but a decision could come by the end of August and now is the time to remain or get engaged. Every hospital in California must tell the OHCA board that penalizing health care providers to the point of bankruptcy is not only illegal, but also detrimental to the well-being of all Californians.
Our July 15 alert has materials to support your engagement. Please take a look and let your voice be heard by July 31.
The second issue is around artificial intelligence (AI), where CHA is advocating in the state Senate to stave off a bill that would severely curb the use of AI-driven technology in clinical settings. As written, the bill would bury clinicians in unworkable disclosure requirements, create perverse liability incentives, undermine patient safety systems, impair clinical quality oversight, increase costs, and reduce patient access to beneficial technology, with the greatest harm falling on the communities that can least afford it.
Specifically, Assembly Bill (AB) 2575 would limit hospitals’ ability to address or remedy staff errors if patient harm results from a clinician’s decision to override an AI tool. It would also increase administrative burdens on clinicians and create unintended consequences for liability — both of which may outweigh the potential benefits of AI for patient care and discourage its use.
We need you to call your state senator by July 31 — the bill will be heard in the Senate Appropriations Committee on Aug. 3 — and ask them to VOTE NO on AB 2575. It is vital that legislators understand that this bill would not achieve its intended goals. Our July 8 alert has talking points and CHA’s most recent letter to support your outreach.
When it comes to effective advocacy, your voices are critical components. The policymakers whose votes will affect your hospital’s ability to care for patients need to hear how their decisions will trickle down to the communities you serve. On these two priority issues, every voice is needed to have an influence.
