Medi-Cal Cuts Could Lead to Spikes in Charity Care, Bankruptcy for Several California Hospitals

Tags: California | California healthcare | California hospitals | California Medicaid | CMS | hospital CEO | Kaweah Delta Health Care | Lindsay Mann | Matt Rees | Mayers Memorial Hospital | Medi-Cal | Medicaid | Medicaid cuts

Last week, CMS approved California's plans to reduce Medicaid rates by 10 percent for physicians and providers, and the repercussions could be far-reaching and deep for several hospitals across the state.

Matt Rees, CEO of Mayers Memorial Hospital in Fall River Mills, Calif., said the cuts in Medi-Cal, the state's Medicaid program, could force the hospital to lay off 50 employees and cut all or part of several different hospital programs, according to a Record Searchlight report. The cuts could even drive the hospital into bankruptcy, he said in the report.

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Lindsay Mann, CEO of Kaweah Delta Health Care District in Visalia, Calif., said his hospital's charity-care burden will probably reach $29 million this year, according to a Fresno Bee report. In 2008, that total was $13 million.

The California Hospital Association criticized CMS last week, saying the Medi-Cal cuts will exacerbate the number of uninsured patients and may force droves of physicians to stop accepting Medicaid patients altogether.

Related Articles on Medi-Cal:

Obama Administration Allows California to Cut More Than $600M From Medicaid Program
Finances in the Era of Population Health: Q&A With Kevin Lang and Steve Mohr of Loma Linda University Medical Center
California's Medi-Cal Proposals Would Increase Co-Payments, Cut Hospital Payments

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