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October 27, 2016 01:00 AM

California hospitals turn to voters to protect Medicaid fee program

Shelby Livingston
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    California hospitals are asking voters to approve a ballot initiative that would permanently extend Medi-Cal's hospital fee program. The fees paid by hospitals generate billions in federal matching funds that subsidize healthcare services for children, seniors and low-income citizens.

    The initiative, Proposition 52, would also make it harder for lawmakers to use Medi-Cal funds for anything other than their intended purpose by requiring voter approval to divert the money.

    Current law requires the legislature to renew the program—it has been renewed four times since established in 2009—while the initiative would require a supermajority vote to end it.

    Lawmakers have diverted funds from the program only once—$400 million to shore up the budget in 2012—but the California Hospital Association argues it could happen again during an economic downturn, when people need Medi-Cal services most.

    The initiative has gained support from both political parties in the state. It's also backed by several large health systems and hospitals, such as Dignity Health, the Children's Hospital of Los Angeles, Sutter Health and Adventist Health, which have donated millions in support of the initiative.

    Service Employees International Union-United Healthcare Workers West opposes Proposition 52 and initially sponsored a campaign to defeat it, donating more than $4 million. But the union has since decided to refocus its efforts on other issues.

    Despite a lack of opponents, Proposition 52 faces an uphill battle because it's complex and has to fight for voters' attention on a ballot crowded with 18 statewide propositions, including one that would tie drug prices paid by state agencies to discounts negotiated by the U.S. Veterans Administration.

    And if voters approve the initiative on hospital fees, extending the program still requires federal approval.

    In the 2015-16 budget year, $4.6 billion in hospital fee program revenue was matched with $4.4 billion in federal funding, resulting in $8.1 billion in total Medi-Cal payments and grants to hospitals, according to the legislative analyst's office analysis.

    “The program is essential to stabilize Medicaid funding in California,” said Shelly Schlenker, Dignity Health's vice president of public policy, advocacy and government relations. “As the largest private provider of Medi-Cal services, the quality assurance fee is necessary for Dignity Health to maintain access to services in our communities and across the state.”

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      • Current News
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      • Transformation
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      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
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        • West
      • Digital Edition (Web Version)
    • Opinion
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      • From the Editor
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        • Nominate/Eligibility
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        • Best Places to Work in Healthcare
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        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
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      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
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