How many clinics are in the Community Clinic Association of Los Angeles County?
CCALAC represents 45 nonprofit organizations operating more than 130 sites across Los Angeles County. They see nearly a million underserved patients each year.
What financial woes have been affecting the clinics?
Clinics face a number of challenges in the current economic environment. They do receive limited reimbursement for the few populations they see with public coverage; however, the vast majority of clinic patients, 63 percent, are uninsured. Clinics cobble together grant funding from the public and private sector to cover their care. With the shrinking economy, many donors have had less to give, and the clinics have had to scramble to find funding sources.
From the ‘09-‘10 state budget, Los Angeles clinics sustained more than $18.6 million in cuts. This translates to reduced clinic hours, reduced staffing, increased wait times and overall decreases in patients served.
Clinics are gearing up for major opportunities from federal healthcare reform. However, these providers cannot rise to the challenge of health reform while the foundation below them is crumbling.
What types of expenses are area clinics having trouble covering? What are possible solutions?
All operating expenses are a challenge when cash flow is an issue. Medi-Cal accounts for 32 percent of clinic revenue. Each week of payment delays hinders clinics’ ability to adequately provide services, especially in this time of dwindling resources. This delayed payment comes on the heels of three consecutive (2007-2009) budget impasses when safety net clinics were forced to endure multiple weeks without Medi-Cal reimbursements. Previously, clinics were forced to take out lines of credit to stay open and repay interest on these loans. Those clinics fortunate enough to have reserves that they could exhaust have not had time to re-accrue savings.
Since the budget and cash flow has become an ongoing issue, the California Primary Care Association has developed an emergency loan fund with lower interest rates and origination fees. A number of foundations have put forward the capital to make this possible. It’s sad that foundations are floating the capital for the state at this time. It’s also a real burn that clinics are taking on debt and interest in order to weather the state’s indecision.
Has a budget been passed? If not, when is it expected?
No, and it is still a ways away. ... Sadly it all comes down to some revenue.
About how many clinics have shut down due to limited budgets?
In L.A., none to date. I believe six clinics closed in other parts of the state.