Media Statement

More Hospital Closures, Reduced Services Coming Without Additional, Immediate Financial Relief in State Budget

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“California hospitals are deeply concerned the proposed May revision to the state budget includes no additional, immediate emergency relief funding for California’s hospitals,” said Carmela Coyle, President & CEO of the California Hospital Association. “California is teetering on the edge of an unprecedented crisis in access to vital hospital services. One in five hospitals is at risk of closure due to the financial havoc wrought by the pandemic, crippling inflation, and systemic underfunding by Medi-Cal.”

“While hospitals appreciate the decision by the Legislature and the governor to make $150 million available to a small number of hospitals at imminent risk of closure, dozens more hospitals are on the edge of a financial cliff,” Coyle said. “Additional state budget support is needed immediately to protect access to care in communities served by more than 200 hospitals that are losing money every day to care for patients.”

“CHA calls on members of the Legislature to press for additional, one-time funding now to prevent any further hospital closures or reductions in patient care services,” Coyle said. “Beyond this immediate relief, a plan to renew the state’s Managed Care Organization (MCO) tax is essential to raise Medi-Cal reimbursement rates to preserve access to health care services in the future,” Coyle added.