Under New AG, CA Hospitals Seek to Cut Charity Care

Some California Hospitals Seek to Cut Charity Care by More Than Half
– Modern Healthcare

Manatt’s Jim Schwartz, a partner with Manatt Health, spoke to Modern Healthcare about California hospitals that are seeking to cut charity care by more than half.

According to the publication, the California Hospital Association needs Attorney General Xavier Becerra’s permission to cut charity care, and Kamala Harris, the former California AG, denied four of these requests previously.

The requests demonstrate charity care’s questionable role under the Affordable Care Act. Far fewer patients meet requirements for free or reduced care because so many have insurance through Medicaid.

"If the need for charity care has diminished and the hospitals have picked up additional obligations through increased Medi-Cal enrollment, that creates a financial burden," said Schwartz. "It would seem to me that that's something that would fairly be looked at."