Alameda Health System could lose $100M through federal cuts

When President Donald Trump signed HR 1 – the ‘Massive Lovely Invoice’ – in July, he touted it as one of many largest tax cuts in American historical past. The invoice would restore “fiscal sanity,” he stated, by eliminating greater than $1.5 trillion in federal spending. And it boosted navy spending whereas ramping up the hiring of ICE brokers, amongst different Republican priorities.

However well being care advocacy teams warned from the beginning that the price range would additionally make unprecedented cuts Medicaidthe nationwide medical health insurance program for about 70 million individuals with restricted incomes and sources. The Center for Medicare Advocacy referred to as HR 1 “the biggest rollback of federal well being care help in American historical past,” and the California Finances and Coverage Heart wrote in an analysis that the legislation “deprives billions in federal help” of well being care suppliers who depend on Medicaid.

That rollback is now starting to impression the Alameda Well being System, which runs Alameda County’s public safety-net hospitals and clinics, similar to Highland in Oakland. The system stands to lose as much as $30 million subsequent 12 months, $100 million in 2027 and an anticipated $150 million in 2028 from the Medicaid cuts. according to AHS.

Final Friday, phrase started to unfold amongst staff that some employees jobs in well being facilities had been being minimize.

The well being care system’s administration confirmed to The Oaklandside that the AHS board of administrators determined in November to chop lots of of jobs. The assertion didn’t say which positions will likely be affected. However AHS acknowledged that the discount is the results of adjustments on the federal stage.

“Due to these vital exterior funding cuts, AHS should put together for a workforce discount,” the well being system’s administration stated in the present day. AHS stated it is going to present severance and extra retirement advantages to workers who go away voluntarily. “As well as, we’ve got recognized 372 positions which are anticipated to be impacted. This quantity might change as the general public financing atmosphere adjustments. The federal and state fiscal atmosphere for healthcare stays fluid.”

SEIU 1021, which represents many AHS workers, is at the moment in discussions with the administration about which particular jobs will likely be minimize and the way companies could possibly be affected.

“The union is heartbroken not just for our members, however for what it will do to the group,” Veronica Palacios, a Highland employee and former president of the union, advised The Oaklandside on Monday. “It will impression our whole group. It’s going to impression our family members and it’ll impression well being care sooner or later.”

The Alameda Well being System depends closely on Medicaid

The Alameda Well being System, which has a $1.4 billion price range and roughly 5,000 workers, operates the Wilma Chan Highland Hospital Campus and Eastmont Wellness heart in Oakland, Alameda Hospital, San Leandro Hospital, St. Rose Hospital, John George Psychiatric Hospital and different clinics and care facilities in Alameda County. It is among the major care suppliers for the roughly 242,000 Alameda County residents enrolled in Medi-Cal, the state’s Medicaid program that’s largely funded by the federal authorities.

As a result of AHS cares for the county’s low-income communities, it depends closely on the Medicaid program. About 60% of the system’s income comes from Medi-Cal.

In August, a month after H.R. 1 was signed into legislation, the hospital system’s government staff and directors had been told during a board meeting that they might quickly be affected by two provisions within the legislation.

First, new work necessities for Medicaid recipients statewide would “throw away tens of millions from Medi-Cal,” together with hundreds of Alameda County residents who’re AHS sufferers. Medicaid recipients would additionally must re-verify their eligibility for this system each six months.

When related guidelines had been applied in Arkansas seven years in the past, about 10% of enrollees required to fulfill work necessities misplaced their Medicaid protection, based on a Research from the National Institutes of Health. An identical decline in Alameda County is predicted to scale back Alameda Well being System revenues by as a lot as $90 million, based on a examine. AHS analysis.

One other complicated function of the brand new federal guidelines signifies that the state of California can not make further funds to AHS above a sure threshold for Medicaid-provided care. AHS acquired round $180 million in all these state funds this 12 months. This cover may imply an extra loss to AHS of $20 million in 2028, rising to $60 million in 2030.

In November, AHS Chief Monetary Officer Kim Miranda advised hospital system directors to establish $235 million in cuts by 2027.

Palacios, the Highland Hospital worker, stated all kinds of AHS employees will likely be affected, together with nurses, nursing assistants, social staff, physicians and therapists.

“The affected workers come from all departments and disciplines of the system, together with administration, help and administrative companies and scientific care,” the federal government stated in an announcement.