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Valley Health System lays out plans to protect safety‑net care as federal funding faces cuts
Summary
County health system leaders told the Board of Supervisors how they would try to preserve services amid possible Medicaid cuts, including maximizing supplemental payments, improving fee‑for‑service collections and operational efficiencies while integrating Regional Medical Center.
The Santa Clara Valley Health and Hospital System presented a multi‑point plan Feb. 25 to shore up operations and protect safety‑net care if federal Medicaid and other funding streams are cut.
Paul Lorenz, CEO of the health system, told the Board of Supervisors that nearly half of the system’s patient mix is covered by government programs: about 48% by Medicaid (Medi‑Cal) and another roughly 36% by Medicare. Lorenz said the system depends on both base fees and a complex array of supplemental and directed Medicaid payments and that many of those supplemental revenue streams are at risk under proposals circulating in Congress. “We are, in fact, facing some unprecedented times relative to health care,” Lorenz said.
Key elements of the health system strategy
- Protect and maximize supplemental Medicaid revenue streams: the system negotiated an increase in…
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