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Healthcare Providers Suffer As Budget Impasse Continues

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 Reporte

Healthcare Providers Suffer As Budget Impasse Continues

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.

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