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San Antonio Regional Hospital warns of financial pressure, outlines plans for local residency program and expanded services
Summary
Hospital CEO John Chapman told the Upland City Council that federal and state payer increases lag inflation and rising drug and labor costs, and announced an ACGME‑approved residency program, planned maternity expansion and senior care initiatives aimed at increasing local capacity.
John Chapman, president and CEO of San Antonio Regional Hospital, told the Upland City Council on Aug. 11 that the hospital is operating under sustained financial pressure from limited payer increases and rising costs but is investing in local capacity to address gaps in primary care, behavioral health and maternal services.
Chapman said federal and state payer rates — Medicare and Medi‑Cal — have produced, at best, a 5.2% increase over three years, “which is less than 2% in additional revenue per year,” while inflation in 2024–25 is substantially higher. He said drug costs have risen in “double digits” (he cited about 15% last year) and that labor costs have increased as well, noting that the hospital has been paying nurses roughly 7% per year over the…
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