Los Angeles to Get Extra $150 Million for Hospitals -- California Capitol Hill Bulletin -- Volume 10, Bulletin 3 -- February 14, 2003

According to an agreement between state and federal officials finalized last week, Los Angeles County public hospital system will receive an additional $150 million over the next two years to help alleviate the health department's fiscal crisis. The county department estimated its deficit within three years to be $709 million, and some placed the figure even higher, given that the department serves a population of 800,000 each year.

The new federal dollars that are going to come out of the deal will help forestall closure of several medical facilities, like Olive View-UCLA and Harbor-UCLA Medical Centers located in Sylmar and Torrance respectively, and the county's network of private outpatient clinics that treat uninsured patients. Several other medical facilities will have to close nonetheless.

Partly brokered by Rep. Jane Harman (Venice) the agreement specifies that $50 million will come from a lawsuit settlement over reimbursement rates for outpatient care at state hospitals, and the remaining $100 million will come from the renewal of a federal program that provides extra money to California hospitals that provide service to large numbers of poor patients. The $150 million figure is less than the $1.4 billion that the Los Angeles county requested last year, but it will reportedly help stave off new cuts within the next two years according to state officials quoted in a recent press report. In addition, the voters passed a new property-tax increase which will raise $168 million annually for the emergency and trauma system.

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