California Hospital Association Opposes Rate-Setting Bill

The California Hospital Association strongly urged the state legislature yesterday to reject a bill that would cut payments to hospitals, doctors and other providers through a unilateral rate-setting government commission. 鈥淭his bill is a recipe for disaster,鈥 CHA President and CEO Carmela Coyle. 鈥淏ased on an initial review of AB 3087, CHA estimates that the state鈥檚 hospitals may lose at least $18 billion annually in revenues. Approximately 60% of hospitals would likely lose money under this legislation, and an estimated 175,000 health care workers could lose their jobs.鈥 Coyle said the bill 鈥渨ould likely push all prices to insufficient levels for the care provided to patients. As a result, California鈥檚 health care system will be thrown into turmoil, with massive cuts in hospital services, and forcing the closure of many hospitals across the state.鈥