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The stakes have never been higher for the millions of Californians who rely on the Affordable Care Act (ACA) for access to the vital health care services they and their loved ones count on every day. As the U.S. Supreme Court weighs the future of the ACA, one point is clear: this momentous law has become part of the fabric of our entire health care system.

So many things we all count on could be upended if the ACA is overturned:

• Guaranteed coverage for people with pre-existing conditions, including almost 950,000 people who have contracted COVID-19.
• The ability of 2 million young adults under age 26 to remain on their parents’ health plans.
• The expansion of Medi-Cal to nearly 4 million low-income Californians, including single childless adults ages 19-25 with incomes up to 138% of the federal poverty level.
• Subsidies through Covered California to make individual health insurance more affordable.
• Enhanced Medicare payments to hospitals, doctors, and other providers that help ensure seniors have access to the care they need, when they need it.
• Cutting through all the partisanship, politics, and legal arguments, the ACA is really about one thing: people. Without the ACA, millions of Californians who rely on its protections will be sicker, their ability to provide for their families will be at risk, and they will face an uncertain future.

With so much at stake, we hope the Supreme Court rules to protect the health of all Californians.

“We applaud Gov. Newsom for signing into law AB 890 (Wood, D-Santa Rosa) — a bill that will expand access to health care, especially in rural communities,” said California Hospital Association President & CEO Carmela Coyle. “By allowing highly trained and certified nurse practitioners to provide primary care as they practice to the full extent of their training, more Californians will be able to get the care they need.”

“Unfortunately, in signing both bills about personal protective equipment supply, the Administration has created double jeopardy for hospitals — subjecting them to disparate requirements and penalties,” said Carmela Coyle, President & CEO of the California Hospital Association. “But, as always, California’s hospitals stand ready to work together with others on the front lines of COVID to find meaningful, long-term solutions to increase the availability of appropriate personal protective equipment to keep patients and workers safe.”

Following Gov. Newsom’s signing of a bill (AB 3242) on Friday that improves access to behavioral health care, the California Hospital Association and the National Alliance on Mental Illness (NAMI) California have issued the following statements:

Hospitals Provide Update on Resurgence Planning as COVID-19 Infection Rates Continue to Rise

WHEN:          Wednesday, July 22, 2020, 10 a.m.

WHERE:        Operator-Assisted Audio Press Conference

Dial-in: (855) 920-2730

Conference Call:  73026#

**CREDENTIALED MEDIA ONLY                  

WHAT:          Carmela Coyle, President & CEO of the California Hospital Association, will discuss hospital capacity (including staffing, PPE availability and more) as California hospitals respond to the surge in COVID-19 positive patients.

WHO:              Carmela Coyle, President & CEO, California Hospital Association

WHY:              As COVID-19 cases continue to rise throughout California, hospitals remain on the front lines in caring for their communities. As hospitals respond to the surge in patients, it is critical that all stakeholders have a shared understanding of capacity, the challenges facing hospitals, and what these mean for fighting the trends that lie ahead.

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Contact:

Jan Emerson-Shea

(916) 552-7516

(916) 804-0663 – Cell

@jemersonshea – Twitter

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California Hospital Association Mourns Passing of Former CEO C. Duane Dauner

FOR IMMEDIATE RELEASE:   July 14, 2020 

“California’s hospitals have lost a true champion with the tragic and untimely passing of C. Duane Dauner,” said CHA President & CEO Carmela Coyle. “For more than three decades, Duane steered California’s hospitals through some of the most pivotal moments in our state’s health care evolution.”

“Duane was an unrelenting advocate for universal health care coverage, dating back to the Clinton Administration in the early 1990s,” Coyle noted. “Duane passionately believed that every person deserved access to affordable, high-quality health care. He was never happier than when the Affordable Care Act was finally passed and signed into law in 2010.”

“Duane’s forward-thinking leadership also resulted in notable initiatives such as the establishment of the Hospital Quality Institute, aimed at improving the quality and safety of hospital care, and the Hospital Fee Program, which has brought billions in new federal funding to California’s Medi-Cal program.”

“Duane’s unwavering dedication to hospitals was in his DNA,” Coyle added. “Even in retirement, he chose to spend his time serving on the boards of several hospital systems across the state. For those of us who had the good fortune to know and work with Duane, he will always be remembered as a kind and thoughtful person who never failed to ask about your family, and always remembered the smallest details.”

“As we mourn his passing from a tragic solo car crash near his home in Palm Desert, we express our deepest sympathies to his wife Diane, his children and grandchildren. Duane Dauner was an inspirational leader and an exceptional human being.”   

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Contact:

Jan Emerson-Shea

(916) 552-7516

(916) 804-0663 – Cell

@jemersonshea – Twitter

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State Budget Deal Spares Some Payment Cuts to Medi-Cal Providers, But Lacks Financial Lifeline Needed by Hospitals 

FOR IMMEDIATE RELEASE:  June 22, 2020

“California’s hospitals are pleased today’s budget agreement between the Legislature and Governor Newsom prevents an estimated $500 million cut to Medi-Cal providers,” said Carmela Coyle, President & CEO of the California Hospital Association. “By rejecting an earlier proposal to cut certain Medi-Cal managed care payments, lawmakers and the Governor have prioritized the health care needs of our most vulnerable residents.”

“While hospitals appreciate the leadership necessary to ensure the Medi-Cal program is protected,” Coyle added, “we are disappointed the budget deal does not provide the financial lifeline hospitals so desperately need to stem the unprecedented fiscal crisis that has resulted from the COVID-19 pandemic.”

“Without financial relief from the state, hospitals may have to continue workforce reductions, pay cuts, and more,” Coyle said. “This is a time when hospitals urgently need state support so they can remain open, staffed, and ready – not only for a possible second wave of COVID-19, but also for all other health care needs, especially as we head into the 2020 flu season.”

“Hospitals are essential to California’s economic recovery. Schools and business cannot reopen, government services cannot operate, and people cannot return to work unless hospitals are open, staffed, and ready to care for those in need,” Coyle noted. “In this moment, we renew our call for our state’s elected officials to stand up for hospitals — just as hospitals have stood up for all 40 million Californians.”

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Contact:

Jan Emerson-Shea

(916) 552-7516

(916) 804-0663 – Cell

@jemersonshea – Twitter

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Independent Report Finds CA Hospital Losses From COVID-19 Could Lead to Long-Term Changes, Service Reductions  

Immediate economic relief is needed for financially challenged hospitals

SACRAMENTO (June 5, 2020) – A new report from Kaufman Hall, a nationally renowned independent consulting firm with extensive health care finance expertise, has found that the COVID-19 pandemic is likely to lead to long-term changes to financial stability and care delivery in California hospitals, many of which were already operating with negative margins. This report, which was commissioned by the California Hospital Association, comes on the heels of one released on Wednesday by the independent California Health Care Foundation, which also foretells long-term economic damage on California hospitals.

“Since the outset of the pandemic, California hospitals have rightfully focused their efforts on caring for COVID-19 patients, protecting their workers, and preserving the safety of their communities,” said Ken Kaufman, chair of Kaufman Hall. “Our research shows that these vital efforts have come at an extremely high cost. When coupled with an already challenging financial environment prior to COVID-19, California hospitals are now facing a very difficult path forward.”

While the immediate impacts of this crisis have already been felt at many hospitals, the Kaufman Hall report found that long-term fallout could include:

• Permanent reductions in patient care volume. According to a recent national survey, 1 in 10 individuals do not plan to reschedule an elective procedure that was delayed by COVID-19, while 24% said they would wait a year or more before rescheduling. Five percent of respondents said they would “never again” reschedule an elective procedure in a hospital.
• Workforce reductions. Given the reduction in the number of people seeking hospital care, hospitals will have no choice but to make significant reductions in expenses. This includes reducing the workforce to adjust to new volume and revenue levels.
• Risk of additional hospital closures. The closure of hospitals has already raised concerns about the capacity to deal with a potential surge of COVID-19 patients or a second wave in the fall. Prior to COVID-19, nearly 40% of California’s hospitals operated in the red and another 11% were barely above break-even; many may not be able to survive this pandemic.
• Difficult financial decisions. Many hospitals have been forced to make difficult decisions with long-term financial implications, including tripping bond covenants, selling investments during a challenging market, and borrowing money at increased interest rates.

“California’s hospitals are facing an unprecedented fiscal crisis,” said Carmela Coyle, President & CEO of the California Hospital Association. “Without financial relief from the state, they run the risk of workforce reductions, pay cuts, and more. This is a time when hospitals desperately need state support so they can remain open, staffed, and ready – not only for a possible second wave of COVID-19, but also for all other health care needs, especially as we head into the 2020 flu season.”

To flatten the curve and prepare for a potential COVID-19 surge, hospitals canceled non-emergency surgeries and elective procedures, bought large quantities of personal protective equipment, and in some cases retrofitted facilities. All this preparation came at great expense. At the same time, many non-COVID patients were avoiding the hospitals, leading to a 35% decline in discharge volumes and 62% decline in emergency room visits in April 2020, according to Kaufman Hall data.

This has resulted in a financial shock like no other and could have ramifications for hospitals and the communities they serve for years to come, the report suggests. California hospitals are now facing a likely $14.6 billion net loss in revenues through the end of 2020, according to the Kaufman Hall report. The losses are only expected to grow larger, with an additional $2.1 billion lost by April 2021.

Even more concerning is Kaufman Hall’s suggestion that the number of uninsured patients and Medi-Cal beneficiaries is expected to grow because of the pandemic, at the same time California is considering drastic cuts to Medi-Cal. This will put additional pressure on hospital revenues. Even if California hospitals were to get state and federal assistance, they would still be projected to face $11.2 billion in losses by the end of 2020, according to Kaufman Hall.

California’s hospitals are the health care hub of many communities — employing nearly 500,000 people and driving nearly $280 billion in state economic activity. For the state to recover from the economic challenges and prepare for future threats ahead of us, Californians must be assured that hospitals are ready to care for them when needed.

“Hospitals need an immediate lifeline in order to continue caring for all Californians in all ways,” Coyle said. “Schools and businesses cannot reopen, governments cannot serve, people cannot return to work – unless hospitals can function. California’s confidence in daily life can’t be restored unless hospitals are funded, stable, staffed, and operational.”

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Contact:

Jan Emerson-Shea

(916) 552-7516

(916) 804-0663 – Cell

@jemersonshea – Twitter

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CHCF Report Confirms California Hospitals Experiencing Substantial “Financial Shock” Due to COVID-19 Response

“Since the onset of the COVID-19 pandemic, California’s hospitals answered the call to respond to this unprecedented crisis — incurring enormous, unplanned expenses for staffing, equipment, and supplies while simultaneously cancelling non-emergency and elective procedures,” said Carmela Coyle, President & CEO of the California Hospital Association. “These actions have resulted in more than $10 billion in short-term losses, a figure confirmed by the California Health Care Foundation, yet hospitals took the actions willingly because it was the right thing to do. CHCF’s new, independent, study confirms the depth of the other crisis we are now facing – a ‘financial shock’ to hospitals so severe that it will impede hospitals’ ability to keep staff, prepare for a COVID resurgence, and care for their communities.”

“For the past several weeks, hospital leaders up and down the state have been sounding the alarm about the devastating fiscal crisis they now face as a result of responding to the pandemic,” Coyle said. “The CHCF report lays out in stark terms just how acute these challenges are – and will continue to be — for the foreseeable future.”

“Hospitals are essential to California’s economic recovery. Schools and business cannot reopen, government services cannot operate, and people cannot return to work unless hospitals are open, staffed, and ready to care for those in need,” Coyle added. “In this moment, we renew our call for our state’s elected officials to stand up for hospitals — just as hospitals have stood up for all 40 million Californians. We urge legislators and Governor Newsom to prioritize California’s hospitals in the state’s budget negotiations by allocating $1 billion in financial relief by June 30.”

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Contact:

Jan Emerson-Shea

(916) 552-7516

(916) 804-0663 – Cell

@jemersonshea – Twitter

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