California hospitals and transit systems seek aid from deficit-ridden budget

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California hospitals and transit systems seek aid from deficit-ridden budget
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Commentary from DanCALmatters: California’s politicians must contend with a multibillion-dollar budget deficit, but they also face demands from leaders of vital health care and transit services for more money to solve their fiscal woes.

A commuter waits for the bus to arrive at the Norwalk Green Line Station in Norwalk on April 3, 2023. Photo by Pablo Unzueta for CalMattersCalifornia’s politicians must contend with a multibillion-dollar budget deficit, but they also face demands from leaders of vital health care and transit services for more money to solve their fiscal woes.they face increasingly strident demands from providers of two very important public services for billions of new dollars to prevent financial collapse.

While hospitals strained to care for hundreds of thousands of COVID-19 patients – and then saw visits plummet below pre-pandemic levels – transit ridership plunged to record-low levels and has recovered only partially as many Californians continue to work from home rather than commute.

The report said that in 2022, California hospital care costs ballooned by $23.4 billion over pre-pandemic levels, leading to losses of $8.5 billion, on top of $12 billion in pandemic-related losses. “The real cost of this crisis – if help does not arrive soon – will be borne by the people of California, whose health care services will erode, slowly in some areas, and all at once in others,” Carmela Coyle, the hospital association’s president, said in a statement.after Attorney General Rob Bonta blocked its sale to a larger health care organization, and several other rural hospitals are reported to be on the brink of closure.

The hospitals’ chief demand is that the state increase payments for services to Medi-Cal enrollees. The system now covers a third of the state’s nearly 40 million residents, but reimbursement rates have been virtually frozen for years.By clicking subscribe, you agree to share your email address with CalMatters to receive marketing, updates, and other emails.

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