Patient Care Coalition Responds To Historic Budget Cuts To Health Care

The Alliance for Patient Care, a broad coalition of health care groups, released the following statement in response to the historic cuts to health care services proposed in the budget this week.

"Slashing more than $2 billion in Medi-Cal funding severely threatens the health care provided to California's low-income families by an already fragile health care system. If implemented, these cuts will erect more barriers for low-income Californians to access health services and will force tens of thousands into high-cost emergency rooms for care. The reductions would force doctors and other providers out of the Medi-Cal program, place increasing pressure on already financially strapped hospitals, and could force clinics to close their doors.

The budget proposal disproportionately impacts California's most vulnerable patients - seniors, those in foster care, the poor, disabled, and chronically ill - who are least able to access health care. Additionally, important services such as home health care and dental and eye care would be cut. Reductions in these services, particularly for chronically ill patients, will force many of these patients into long-term facilities and hospitals, where the care is even more expensive.

Making matters worse, the budget uses accounting gimmicks to delay payments to health care providers by as much as a month. When the state delayed payments during last year's budget standoff, some providers - particularly health clinics and home health care services - struggled to keep their doors open to all patients.

Cuts of this magnitude have not been proposed in recent memory.

These cuts may have been proposed to address a budget shortfall, but they will cost California dearly in the short and long run. Not only will the state lose valuable federal matching funds worth more than $1 billion every year under this proposal, but the costs of health care will rise for everyone as patients seek care in emergency rooms and other expensive forums.

We cannot afford to take such a giant step backwards in health care in this state."

The Alliance for Patient Care coalition is a group of health care providers and patient groups that advocates for greater access to care for California's most vulnerable patients in the Medi-Cal and Healthy Families programs.

Quotes from representatives of various member groups of the coalition:

"It is inconsistent to talk about expanding health care coverage for low-income families at the same time we are cutting the budget of the state's health care program for low-income families. Cutting the budget for Medi-Cal will only exacerbate the problems the Governor's health reform plan was designed to solve. Fewer Medi-Cal dollars will mean less access to doctors for low-income families, more patients in emergency rooms, and higher health care costs for everyone."

- Richard Frankenstein, M.D., President of the California Medical Association

"The additive impact of these proposed cuts in health care on our most vulnerable low income frail elders will put their very lives at risk. Adult day health care and Alzheimer's day care centers are small, important programs designed to keep people living in their communities. They rely almost 100% on Medi-Cal funding. A 10 percent cut in the rate, plus five weeks of no cash flow will shut down a significant number of these programs, some permanently. Without the support of day services, most displaced individuals will end up in a nursing home, costing the state four times as much. "

- Lydia Missaelides, Executive Director for the California Association for Adult Day Services

"The Governor's budget proposals have severe consequences for our most vulnerable citizens. Delaying Medi-Cal payments supporting aged and disabled Californians in nursing homes by a month will create extreme hardships for thousands of Medi-Cal beneficiaries dependent on weekly payments for their care. The delay could also put struggling providers into bankruptcy, which would cause the dislocation of this frail population."

- Jack Christy, Director of Public Policy for Aging Services of California

"Cutting Medi-Cal reimbursement for dialysis patients would be counter-productive. Medi-Cal reimbursement rates are already so low they do not cover the cost of dialysis treatment. Further lowering these already inadequate rates could lead to access problems and higher rates of hospitalization for dialysis patients, thus increasing costs to a level which would more than offset the anticipated savings!"