Getting your
Trinity Audioplayer ready...California’s safety-net health clinics must spend 90% of revenue on providing services to underserved people, rather than on management or overhead, should voters approve Proposition 44.
Patients at these federally qualified health centers have insurance through Medi-Cal, the state’s Medicaid program that provides coverage for low-income residents. The clinics serve regions or populations that generally don’t have great access to medical care, and offer services ranging from counseling and family planning to preventive screenings and vaccinations.
Clinics that fail to adhere to this spending requirement, should voters approve Proposition 44, could face monetary penalties. The fine could be returned if the clinic becomes compliant within five years, the measure says.
More than 1,000 of these health clinics operate in California, according to the Legislative Analyst’s Office, and many are nonprofits. Others are operated by counties.
The fiscal impact to the state is estimated to be in the low tens of millions of dollars annually to enforce the requirement. But the Legislative Analyst’s Office estimated that most of the cost could be made up by the fees and penalties charged to noncompliant clinics.
This measure is backed by the Service Employees International Union-United Healthcare Workers West. Backers said the effort is a way to ensure community clinics are spending tax dollars on patient care — particularly amid federal healthcare funding cuts.