California Legislators, Physicians and Workers Urge State Budget Funding for Public Hospitals to Protect Health Care Access

SACRAMENTO - Assemblymembers Patrick Ahrens (D-Silicon Valley), Robert Garcia (D-Rancho Cucamonga), and Tina McKinnor (D-Inglewood), stood with California's public hospital system administrators, doctors, nurses, and workers at the State Capitol to urge a $500 million state budget investment to stabilize operations at California's 17 public hospital systems facing $3 billion in losses yearly as a result of federal cuts to health care services in H.R. 1 and another $800 million as a result of changes in the May Revise. Without state investments, providers and legislators warn that vital healthcare services relied upon by millions of Californians are at-risk.

"Public hospital systems are the backbone of health care in California," said Assemblymember Patrick Ahrens, a member of the State Assembly's Budget Committee championing the $500 million budget request, "I was born in a public hospital and refuse to stand by while they are torn apart. Without strong public hospital systems in California, health care access collapses and people suffer. We can prevent this crisis through an emergency response. It's time for the state to extend a financial lifeline to public hospital systems now."

Assistant Majority Leader Robert Garcia shared, "California has both the opportunity and a responsibility to step up where the federal government has chosen to deny access to care for millions of Californians. These devastating and unprecedented federal cuts as a result of H.R.1 will impact not only patients, but entire communities that rely on our public healthcare systems. I'm proud to support this critical investment in healthcare as a fundamental human right, and I thank Assemblymember Ahrens for championing this important effort."

Assemblymember Ahrens authored the budget request letter to the Committee on Budget signed by 7 additional Assemblymembers including Assistant Majority Leader Robert Garcia, and Assemblymember Tina McKinnor authored a letter on behalf of the Los Angeles County Legislative Delegation to the Budget Committee requesting the $500 million allocation to public hospital systems. The Santa Clara County Legislative Delegation is also requesting the funds.

As Chair of the Los Angeles County Legislative Delegation, Assemblymember McKinnor wrote in a budget letter, "In 2005, the State withdrew its funding for the Medi-Cal match, or Non-Federal Share (NFS), for inpatient fee-for-service patients in public hospital systems, leading to a direct annual savings to the General Fund. However, this shift placed the financial burden of the NFS on public hospital systems, which now totals more than $500 million. Because of this responsibility, and in combination with low managed care rates, public hospital systems have been forced to rely on federal supplemental payments, including SDPs, which are now being capped, phased down, or further jeopardized. Investment in the 2026-27 Budget will offer a crucial first step towards stabilizing public hospital systems as we brace for the impacts of H.R. 1 and additional cuts."

Last year the federal government adopted H.R. 1, which cuts $1 trillion from spending on health care over the next decade. These federal cuts will result in California's public hospitals losing more than $3 billion every year, and an estimated 2 million Californians losing health care coverage next year. California's May Revise worsens public hospital system's financial positions by an estimated $800 million a year by reducing reimbursement rates for care provided to immigrant populations.

"No matter how well run, how lean or how committed its staff, no hospital system can absorb financial losses of this magnitude without stark cuts to services that will restrict health care access for millions of patients," said Katie Rodriguez, Interim President and CEO, California Association Public Hospitals and Health Systems. "We are on the front lines of a preventable health care crisis and we urgently need help. The decisions state leaders make over the next month will decide how painful and deadly this crisis becomes in communities across California."

California's 17 public health care systems, which include county-owned or affiliated systems and five University of California academic medical centers, are the backbone of health care access in the state. Comprising just 8% of the state's hospitals overall, the 3.7 million patients served equate to 35% of all Medi-Cal and uninsured care. Furthermore, public hospitals operate 67% of the state's burn beds, 32% of psychiatric beds, and 15% of neonatal intensive care beds while training nearly half of all new doctors in hospitals.

"Every 11 minutes, someone in Santa Clara County is taken by ambulance to one of our four County-run hospitals, which handle nearly half of local emergency rooms visits and 80% of trauma cases. This life-saving system is now at risk due to federal funding cuts that could lead to patients overwhelming other area hospitals," said Dr. Brian McBeth, Hospital Executive, Santa Clara Valley Medical Center. "We've restructured services, eliminated vacant positions, maximized reimbursements, and pursued every efficiency possible, but without State action to protect public hospitals, families' access to care and the future of our emergency rooms remain at risk."

Public hospital workers represented by SEIU California, including SEIU Local 521 and SEIU Local 1021, spoke at the press conference about the impacts to life-saving care.

Derrick Boutte, Environmental Services worker at Alameda Health Systems and East Bay President of SEIU Local 1021, said of the devastating cuts to public hospitals,"I am very concerned that the patients my coworkers and I serve will have worse care options tomorrow than they have today. With safety-net health systems moving to layoff critical staff, even if someone reaches a hospital for life-saving care, that hospital might not offer the same services tomorrow that it does today. Unless the state steps up, there will be devastating impacts to communities and families across California."

The May 2026 Budget Revise for the 2026-27 fiscal year shows no deficit in 2026-27 or 2027-28. Through April 30, California income taxes exceeded the January forecast by $10.9 billion.

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Assemblymember Patrick Ahrensrepresents the Silicon Valley in the California State Assembly for District 26. He serves on the Assembly Committees on Budget, Business and Professions, Health, Rules, Transportation, and Budget Subcommittee No. 2 on Human Services. Assemblymember Ahrens is the Co-Chair of the California Legislative Technology & Innovation Caucus, and a member of the California Legislative Jewish and Bay Area Caucuses.

Assistant Majority Leader Robert Garciaproudly represents the 50th Assembly District, which includes all or parts of the cities of Colton, Fontana, Loma Linda, Ontario, Rancho Cucamonga, Redlands, Rialto, and San Bernardino, as well as unincorporated Bloomington.

Assemblymember Tina McKinnorrepresents District 61 and the cities and communities of Gardena, Hawthorne, Inglewood, Lawndale, Lenox, Los Angeles, Marina del Rey, Venice, West Athens, Westchester and Westmont in Los Angeles County. She is Chair of the Los Angeles County Legislative Delegation.