After reading an article on SFGate.com on July 31 detailing how California’s late budget is affecting some of the state’s healthcare providers, we thought that it would be a good idea to share some excerpts with our readers written below.
Please click here to read the entire article: State budget struggle hobbles some hospitals. (NOTE: If you are not registered with SFGate.com, there’s a short form to complete before viewing the article.)
“Doctors Medial Center of San Pablo, already struggling with bankruptcy, got more bad news Monday when state officials announced that the hospital likely will not receive its Medi-Cal reimbursement payment this week because of the state’s late budget. The payment is part of an expected $227 million statewide reimbursement the state owes to hospitals, clinics, nursing homes and other institutions that provide care for an estimated 7 million elderly, disabled, low-income children enrolled in Medi-Cal..A total of $1.1 billion in payments, including Medi-Cal reimbursements, have not been made since July 1, according to the state controller’s office.”
In a nutshell, this article explains how even slower government payments will affect the cash flow of some California healthcare institutions. Certainly without a solid stream of cash coming into these facilities, they will be forced to start extending the terms with some of their vendors.