California hospitals filed a lawsuit against a state health regulator this week, seeking to block rules meant to keep consumer healthcare costs from growing too quickly. The state Office of Health Care Affordability sets limits on healthcare spending, capping the amount that a hospital's spending can grow each year. CHA argues that the rules are illegal and will result in layoffs and cuts in services, ultimately reducing access to care. In a complaint filed in San Francisco County Superior Court, CHA argues that setting spending limits creates 'arbitrary and irresponsible cost targets that single out hospitals.' The suit also contends that the rules 'will severely disrupt … hospitals' ability to provide comprehensive, high-quality services by starving them of the resources they need to perform their critical roles.'
Jefferson Health, one of Philadelphia's biggest health networks, is laying off hundreds of employees, citing major financial issues. Jefferson Health says it is reducing its workforce by 1%, affecting between 600 and 700 of its 65,000 employees. Jefferson released a statement, saying in part, "To sustain our mission and continue serving our communities, we must take thoughtful, strategic actions– to align our operations for the future."
Blythe and county officials are developing a plan to keep Palo Verde Hospital from shutting down after a local commission voted last month to dissolve the Palo Verde Healthcare District Board, which oversees hospital operations. The hospital is scheduled to close in November following the board’s approval of filing for Chapter 9 bankruptcy. The next-nearest health care facility for area residents is in the Coachella Valley, over 90 miles away from Palo Verde Hospital.
More than 2.5 million North Carolina residents are getting over $6.5 billion in medical debt eliminated through a state government effort that offered hospitals extra Medicaid funds from Washington if they gave low- and middle-income patients the financial relief and implemented policies to discourage future liabilities. Democratic Gov. Josh Stein, the state health department secretary and other officials announced Monday results so far from what then-Gov. Roy Cooper unveiled 15 months ago as a first-of-its-kind initiative. While helping almost one-quarter of North Carolina residents, Stein said the effort has exceeded expectations in giving individuals and families a second chance to succeed financially after medical crises. Officials previously estimated it could help about 2 million people get rid of $4 billion in debt. The debt that had been held by hospitals, and are usually difficult to recover, will be pulled from credit reports, the governor said.
U.S. Bankruptcy Judge Stacey Jernigan granted a motion Friday allowing Prospect Medical Holdings to abandon Crozer-Chester Medical Center and Springfield Hospital if a sale doesn't materialize. Attorneys for Prospect told the judge that the company reached an agreement with taxing authorities in Delaware County to make the shuttered properties more attractive assets.
Montgomery city leaders approved a resolution at Tuesday's city council meeting designed to support the financially troubled Jackson Hospital. In a unanimous vote, the city council said it intends to enter into an agreement with Jackson to help keep the hospital financially viable, and they are encouraging both county and state leaders to do likewise. Jackson Hospital declared bankruptcy earlier this year and needs additional revenue to continue operations. An investment group warned last week that, without new funding, Jackson Hospital could close by the end of October. Administrators said the hospital had about $2 million in the bank, not enough to keep operations running beyond the next 30 days, and asked the city to back a $20 million loan to cover payroll and operating expenses.