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Committee forwards $29.5M supplemental to cover public‑hospital shortfalls after state fee cuts; debate over contracting out security
Summary
The committee forwarded a reduced supplemental appropriation to cover cost overruns at San Francisco General and Laguna Honda Hospitals after state hospital fee revenue fell short; the Department of Public Health described a $56M reduction in expected hospital fee revenue and requested $17M more to cover final gaps. Public commenters and staff debated contracting out hospital security versus building a civil service option.
The Budget and Finance Committee advanced a supplemental appropriation to address cost overruns at the Department of Public Health after the city learned state hospital fee revenues would be far lower than budgeted.
DPH representative Greg Sass outlined a sequence of state actions and implementation issues that reduced expected hospital fee revenue: initial budget assumptions budgeted $88 million; the effective date for payments was moved, reducing the catch‑up by six months and reducing funding by $23.5 million; later state legislation eliminated…
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