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. “This bill is a recipe for disaster,” said CHA President and CEO Carmela Coyle. “Based on an initial review of AB 3087, CHA estimates that the state’s 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.” Coyle said the bill “would likely push all prices to insufficient levels for the care provided to patients. As a result, California’s health care system will be thrown into turmoil, with massive cuts in hospital services, and forcing the closure of many hospitals across the state.”