| Article |
May 2, 2008
East Bay Business Times
by Marie-Anne Hogarth
East Bay hospitals brace for Medi-Cal cuts
Hospitals and health plans in the East Bay are hoping to reverse the effect of cuts to the state's Medi-Cal program that could go into effect as early as July, even as Gov. Schwarzenegger announced April 29 the state budget deficit has grown to $20 billion.
Medi-Cal, California's version of the federal Medicaid program, provides health care coverage for more than 6 million low-income children and families, in addition to some people who are blind, elderly and disabled. Hospitals, who provide emergency and critical care services to these patients, already lose 22 cents for every dollar they spend providing care through the program, according to the Hospital Council of Northern California.
The state Legislature last February passed a round of emergency cuts including more than $169 million that would apply to hospitals, according to she state Legislative Analyst's Office. Health care leaders are waiting for the state's May revised budget to see the ultimate impact.
How the cuts affect different hospitals will depend partly on who they contract with for Medi-Cal services and when these plans pass on the cost.