The California Hospital Association says it’s disappointed by the magnitude of the proposed cuts Gov. Arnold Schwarzenegger wants to make to Medi-Cal payments, as legislators try to address the state’s current $3.3 billion budget deficit in a special session. Healthcare providers will likely face even more cuts when lawmakers begin to address the projected $14.5 billion deficit in fiscal year 2008-09.
The association, which represents nearly 450 hospitals and health care systems, said the governor has proposed delaying $165 million in payments already due hospitals. Additionally, he has proposed cutting nearly $1 billion in Medi-Cal payments in the 2008-09 year, of which $254 million will come out of hospitals’ coffers, said Jan Emerson, CHA vice president of external affairs.
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