July 11, 2005 - Administration to Justify Flawed Hospital Financing Plan to Legislature

Administration to Justify Flawed Hospital Financing Plan to Legislature

De La Torre expresses concern for CA hospitals facing an uncertain future under plan

WHAT:		Assemblymember Hector De La Torre (D-South Gate), Chair of the Budget Subcommittee on Health and Human Services, will co-chair a hearing on the details of Governor Schwarzenegger's hospital financing agreement with the federal government. The hearing will be conducted jointly with the Assembly Health Committee, Senate Health Committee, and the Senate Budget Subcommittee on Health and Human Services.
WHERE:		Room 126, State Capitol Sacramento, CA
WHEN:		Wednesday, July 13, 2005 10:00 am
INFO:		On June 22, 2005, the Schwarzenegger Administration announced an agreement with the federal government on a Medicaid waiver that restructures financing for California's safety net hospitals over the next five years. The agreement makes a significant portion of funding for hospitals conditional on the Legislature enacting the Administration's proposal to expand mandatory enrollment of managed care plans for aged and disabled Medi-Cal patients. The Administration's managed care proposal was rejected on May 19, 2005, when the Assembly Budget Subcommittee on Health and Human Services voted to set aside this expansion of managed care. On June 14, 2005, Assemblymember De La Torre led a group of 33 Assemblymembers in writing a letter to the Governor outlining three major concerns with the then-unfinished proposal including the managed care condition, the lack of a reliable growth component, and uncertainty about the stability of funding sources. A coalition of hospital groups has not endorsed the Governor's proposal and has expressed numerous concerns with the plan. This coalition includes the California Hospital Association, the California Association of Public Hospitals and Health Systems, the California Children's Hospitals, and the Private Essential Access Community (PEACH) Hospitals. Hospitals are not convinced that the amount of funding projected by this agreement is truly available due to the various conditions. The hearing will examine many of the financial assumptions behind the waiver proposal. Witnesses will include Administration officials, hospital groups, consumer advocates, and the general public will be allowed to comment.

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