Community healthcare providers are breathing a sigh of relief following the overwhelming defeat last week of state Proposition 44, which would have imposed penalties on community health clinics that failed to spend 90% of revenues on programs that provide care.
Voters resoundingly defeated the measure.
As of last Thursday morning’s tally, 81.9% of voters marked “no” on their ballots.
The measure was placed on the ballot by the SEIU Healthcare Workers West union and had the support of the California Federation of Labor. They argued that too much of community healthcare clinics’ funding and revenue is being siphoned off to pay what they consider bloated administrative costs SEIU Healthcare Workers West had previously put measures with similar provisions aimed at diabetes care clinics on two statewide ballots; those measures also failed.
The opposition
Proposition 44 was opposed by a broad array of healthcare provider groups, including the California Hospital Association and the California Medical Association.
The opponents argued that many clinics would have a difficult time meeting the 90% threshold as overhead costs have soared in recent years. They further contended that when the penalties are combined with expected federal Medicaid funding cutbacks hitting next year, many clinics would be forced to close.
“California’s voters recognized how dangerous Prop 44 was to community health centers,” said Tamra King, chief executive of San Pedro-based Harbor Community Health Centers. “HarborCHC can continue to serve the South Bay community without fear of having to choose between cutting services or paying massive fines that ultimately would have hurt patients and staff.”
