Time is running short.
In a matter of weeks, the deadline will expire for hospital leaders to speak out before the Office of Health Care Affordability (OHCA) forces more cuts on health care services in California.
On April 11, the formal comment period will end on the board’s proposal to institute hospital sector spending growth targets. These targets would cap spending on health care services for nearly a dozen hospitals at well below the state target for all health care sectors, in addition to being well below the basic inflation rate.
OHCA’s overall spending growth target is 3.5% for 2025, ramping down to 3% by 2029; the proposal that could be voted on in April would cap spending at half that for an incredibly dissimilar group of hospitals. But hospitals’ workforce, supply, and drug costs are currently growing at 6%, 8%, and 10%, respectively. It will be extraordinarily difficult for hospitals to sustain their workforces, afford drugs and supplies, maintain their facilities, and provide vital — but money-losing — health services under these conditions.
The premature setting of sector targets — without any analysis of their impact on patients — is a dangerous precedent that will generate major hurdles for Californians to access vital health services in their communities.
If you haven’t yet submitted comments ahead of the April 11 deadline to share views on the concerning precedent, as well as the overall too-low 3.5% target, please make use of CHA’s alert and OHCA resources to raise your voice as soon as possible.
At a legislative hearing in March, lawmakers questioned OHCA staff extensively on the sector target proposals and their thinking behind them. In short, they offered little information:
- Have OHCA staff visited the target hospitals?
- No.
- Have OHCA staff analyzed the impact of these proposals on access to care?
- No.
- What cost factors outside of the control of a hospital will be considered against the targets?
- We’ll figure that out on the back end.
- Will spending targets disrupt access to care for Medi-Cal patients?
- We’re looking into it.
- How will these spending targets affect health insurance premiums?
- OHCA doesn’t regulate premiums.
- And more.
As the health care field nationwide braces for potential cuts to Medicare and Medicaid, it’s unclear exactly what impact federal action will have on California, but any reductions would be painful. It is very certain, however, that the damage to patient care resulting from these spending growth targets will create more chaos and fear for hospitals, doctors, clinics, Planned Parenthood, and most importantly, patients.
Additional opportunities to engage with the OHCA board are detailed in CHA’s alert. Every voice matters, and your hospitals have a critical story to tell as we stand together and stand up for patients.
