Hospitals Face Medi-Cal Rate Freeze in FY 2010-11; CHA Holds Off Further Cuts
CHA Budget Review

The final fiscal year (FY) 2010-11 state budget, signed by the Governor on Oct. 8 — 101 days into the fiscal year — includes a Medi-Cal rate freeze for hospitals that is expected to save the General Fund $84.5 million.

This is the third year in a row that the Legislature and Governor had to address a significant deficit, due in large part to the worst state recession since the Great Depression. The FY 2010-11 state budget closes a deficit of approximately $19 billion through a combination of reductions, federal funds and other solutions.

Please see the attached CHA Budget Review for more on how the FY 2010-11 state budget will impact hospitals.