California Health Check

Finestone, Deborah
June 2003
Bond Buyer;6/27/2003, Vol. 344 Issue 31666, p1
Trade Publication
While some hospital officials in California say they expect the state to spare them from major funding cuts, investors and analysts say the sheer size of the state's health care budget causes them to worry that the sector is vulnerable. Lawmakers have discussed cutting billions of dollars in spending for health services as they struggle to close a $38 billion budget deficit. The state has already stopped making some payments to health care providers for patients enrolled in Medi-Cal, California's version of Medicaid. California spends 28% of its budget on health and social services, which is second only to education. At least some investors are keeping a close eye on what the budget can mean for hospitals, in addition to schools, universities, cities, and counties that rely on state funding even more than hospitals do.


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