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

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.

Advertisement

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.

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

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Financial Management

  • Baylor College of Medicine and Texas Children’s Hospital established an affiliation more than 70 years ago in the Texas Medical…

  • Fitch revised Ontario, Calif.-based Prime Healthcare Services’ outlook to positive and affirms its “B” rating.  The revised outlook reflects Fitch’s…

  • Brentwood, Tenn.-based Lifepoint Health, a health system owned by private equity firm Apollo Global Management, has largely grown over the…

Advertisement

Comments are closed.