Health Care Providers Continue To Feel Pain From Late Budget
Friday, September 17, 2010
California's budget impasse continues to cause financial problems. The state hasn't reimbursed health care providers for Medi-Cal services for almost a month. Some local providers have had to dig deep.
SAN DIEGO California's budget impasse continues to cause financial problems. The state hasn't reimbursed health care providers for Medi-Cal services for almost a month. Some local providers have had to dig deep.
South San Diego's Casa Pacifica provides daycare services for chronically ill seniors and disabled adults. The center has 55 employees.
It depends on Medi-Cal funding to stay afloat.
Casa Pacifica's Luba Vaisman said the state owes them $176,000, but she says they planned ahead.
"We actually got prepared," Vaisman said. "After so many years of delays, because this is not the first time, I have a cash reserve, and we secured a line of credit with our bank."
Vaisman said Casa Pacifica could probably survive another eight weeks without being paid by the state. But she said if a budget isn't approved by then, all bets are off.
"I don't want even to think about it," Vaisman shuttered. "We'll have to close or something, I don't know. I can't put panic on the street."
About 800 community clinics in the state haven't been paid for weeks. Vendors who sell supplies to the Medi-Cal program are in a similar situation.
California has already racked up more than $3 billion in unpaid bills. If the budget impasse stretches into October, the state will add another $3 billion to its tab.