CEO Message

OHCA Decision Indicates Court Recognizes Harm Being Caused

Last week, San Francisco Superior Court Judge Joseph M. Quinn ruled that CHA’s lawsuit against the Office of Health Care Affordability can proceed and that the court will rule on the merits of the case. 

While the ruling to establish standing appears to be a procedural victory on its face, the court’s decision is welcome news in the fight for access to care, as it sends two important signals. 

First, the ruling makes clear that OHCA’s actions can be considered to cause harm even before penalties are levied — a critical distinction given that hospitals are already making tough decisions about spending to stay under the caps in effect today.  

Second, it establishes that OHCA’s actions are ripe for judicial review now, demonstrated by the fact that the court is willing to hear the case and rule on the merits.   

It’s telling that OHCA attorneys fought tooth and nail to prevent the substance of this case from ever being heard, arguing that standing to file suit could not be established because no “actual harms” had been inflicted prior to enforcement. The judge saw through those arguments, recognizing that the decisions OHCA is making in a conference room in Sacramento are having far-reaching implications for communities throughout the state.  

CHA issued a media statement following the ruling that calls broader attention to our ongoing fight for access to care for patients.  

The bottom line is that this ruling marks a critical step forward in our fight to protect the resources hospitals have available to care for patients across California, notable progress given the board’s recent decision to approve a health care spending target penalty structure that further jeopardizes patient care.  

We will continue to keep you apprised as this litigation makes its way through the court. In the meantime, please direct questions to Ben McGowan, vice president, legal counsel, or Victoria Valencia, vice president, data analytics.