California hospitals sue to stop state cost control board’s spending caps
The cost reduction targets would push 83% of the state’s hospitals finances into the red, according to a provider survey.
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California’s cost control board is a sharp departure from such boards in other states and needs to be stopped, according to a lawsuit from state hospitals.
The California Hospital Association (CHA) filed a lawsuit against the California Office of Health Care Affordability (OHCA) on Oct. 15 to stop spending tracking that would produce “potentially substantial monetary penalties” by 2028.
“OHCA has unfairly targeted hospitals without the necessary research and analysis” Carmela Coyle, president & CEO of the CHA, said in a press release. “This has resulted in a handful of unelected individuals who have chosen to cut billions from California’s health care system, endangering access to health care in vulnerable communities across the state.”
