Health

NBC Palm Springs

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California Hospital Penalties Raise Concern Over Service Cuts

California is considering a new approach to rising health care costs: financially penalizing hospitals and medical groups that repeatedly exceed state spending targets. But for patients in the Coachella Valley, the bigger concern may be what happens if those penalties lead hospitals to cut services.The California Healthcare Affordability Board is considering penalties for health care organizations that continue to exceed spending growth targets after being placed under corrective action plans. The goal is to slow the growth of medical costs and make health care more affordable.Hospitals and other providers, however, argue they are already dealing with rising labor, pharmaceutical and operating expenses. They warn that substantial fines could create additional financial pressure and potentially affect the services they provide.During the Roggin Report, Tammy Bleck questioned whether penalties could have unintended consequences, including the possibility of hospital closures or reductions in departments such as mental health, obstetrics and emergency care.“At what cost?” Bleck asked, raising concerns about whether efforts to control spending could ultimately reduce access to essential medical services.Stephanie Minor agreed that the issue is complicated. She described it as a “double-edged sword,” saying patients clearly need more affordable health care while also needing hospitals to remain financially stable enough

California · 08-27