California's budget impasse is putting enormous financial pressure on nursing homes and other providers that depend on Medi-Cal payments. The state ran out of Medi-Cal funds on July 24th. KPBS Reporter Kenny Goldberg has more.
Money from Medi-Cal typically makes up about two-thirds of the budget of nursing homes. People who provide care to the developmentally disabled are totally dependent on Medi-Cal, because they have no other source of funding.
Betsy Hite is with the California Association of Health Facilities. Her group represents long-term care homes. She says many providers are having a tough time.
Betsy Hite : They are exhausting lines of credit. They are taking out high interest loans. These are small businesses, and they are not prepared to go for a two month period without any payment.
Hite says some small facilities will have to close if the state budget isn't resolved soon.
Kenny Goldberg, KPBS News.
