Budget Impasse: Medi-Cal Funds Run Out for Health Clinics

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(Sacramento, CA)
Thursday, July 24, 2008

On average most community clinics get about half of their funding from Medi-Cal payments.  Low-income and disabled patients access a wide range of health care services from these facilities. 

Dr. David Katz is with the CommuniCare Health Centers, a group of clinics in Yolo County. He says the longer the budget impasse, the more clinics have to scramble to pay the bills. 

Katz: “We will have to borrow money. At the point where we can’t borrow any more money we will have to let staff go and reduce the number of services that we will provide.” 

Katz says rural clinics around the state might have to close because of the temporary payment freeze. Nursing homes, adult care centers and most hospitals also won’t get Medi-Cal payments until the budget is approved by the legislature and signed by the governor.