PEACH Statement on Governor's May Revise Budget

On behalf of Anne McLeod, President and CEO: “While our state is facing an unprecedented economic impact as a result of COVID-19, hospitals are essential to economic recovery, especially our state’s community safety net hospitals that heroically answered the call to respond to the COVID-19 pandemic. Our state’s safety net hospitals employ more than 125,000 workers, are often the largest employers in their communities and serve the health care needs of state’s most vulnerable residents. It is essential that the state provides needed relief to ensure these hospitals can continue to operate because they are a foundational element to safe economic recovery. We are asking that the Governor and legislature respond to our call for support to community safety net hospitals by adjusting Medi-Cal payments to account for the social complexity of treating a disproportionate share of the state’s homeless – and jobless – populations. Community safety net hospitals to date have been disadvantaged by the distribution formula of federal dollars because those dollars are not aimed at hospitals that care for vulnerable populations like these. This would provide $50 million in needed relief where the federal government has failed to act. At this time of unprecedented financial strain to hospitals, we are also asking that the state thoughtfully sequence the state’s collection of its $1 billion share of the Hospital Fee Program to provide hospitals with needed cash-flow relief. California’s community safety net hospitals met the moment – and to continue caring for our state’s most vulnerable and help drive economic recovery, we hope leaders in Sacramento prioritize relief for our hospitals and workers on the front lines.”