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Union Seeks to Limit Health Clinic Spending via Prop. 44
Confirmed
In Short: The Service Employees International Union-United Healthcare Workers West (SEIU-UHW) is pushing Proposition 44, which would limit how community health clinics spend their money.
The Service Employees International Union-United Healthcare Workers West (SEIU-UHW) is pushing Proposition 44, which would limit how community health clinics spend their money. The union claims that too many clinics spend money inappropriately on high executive salaries and other non-patient care expenses.
Prop. 44 would require clinics to spend at least 90% of their revenue on patient care and limit administrative expenses to 10% of revenue. The initiative would penalize clinics that do not meet these requirements, with fines going into a special fund for health workforce spending.
Union spokesperson Renee Saldana said the initiative is meant to secure spending for patients and workers, not take money away from clinics. However, Francisco Silva, chief executive of the California Primary Care Association, called the initiative an 'existential threat' to clinics.
Silva said the measure would force clinics to cut services, staff, or close. A study commissioned by the primary care association found that most clinics would pay a collective $1.7 billion in penalties in the first year, and nearly half of all clinics in the state could close.
Silva noted that community health centers are often the only source of care in many communities. He said the initiative would prevent clinics from spending on patient navigators, translators, food pantries, and capital improvements like renovations and new buildings.
The union's push for Prop. 44 comes as they also support a billionaire wealth tax. However, public interest in the billionaire tax fight dwarfs all other ballot measures, including Prop. 44.
According to a September poll from the Public Policy Institute of California, only one in three likely voters support the initiative.
Clinics argue that their spending is already highly regulated, and they prioritize patient care. They warn that Prop. 44 could bankrupt many facilities and undermine the basic safety net provided by community health centers.
What this adds
The initiative's impact on clinics and patient care remains a point of contention, with the union and clinics presenting starkly different views on its potential effects.
What's confirmed
- The Service Employees International Union-United Healthcare Workers West (SEIU-UHW) is pushing Proposition 44, which would limit how community health clinics spend their money. The union claims that too many clinics spend money inappropriately on high executive salaries and other non-patient care expenses.
- Prop. 44 would require clinics to spend at least 90% of their revenue on patient care and limit administrative expenses to 10% of revenue. The initiative would penalize clinics that do not meet these requirements, with fines going into a special fund for health workforce spending.
- Union spokesperson Renee Saldana said the initiative is meant to secure spending for patients and workers, not take money away from clinics. However, Francisco Silva, chief executive of the California Primary Care Association, called the initiative an 'existential threat' to clinics.
- Silva said the measure would force clinics to cut services, staff, or close. A study commissioned by the primary care association found that most clinics would pay a collective $1.7 billion in penalties in the first year, and nearly half of all clinics in the state could close.
- Silva noted that community health centers are often the only source of care in many communities. He said the initiative would prevent clinics from spending on patient navigators, translators, food pantries, and capital improvements like renovations and new buildings.
- The union's push for Prop. 44 comes as they also support a billionaire wealth tax. However, public interest in the billionaire tax fight dwarfs all other ballot measures, including Prop. 44.
- According to a September poll from the Public Policy Institute of California, only one in three likely voters support the initiative.
- Clinics argue that their spending is already highly regulated, and they prioritize patient care. They warn that Prop. 44 could bankrupt many facilities and undermine the basic safety net provided by community health centers.
What's still developing
- “We’re seeing clinics that have extravagant fundraisers or art collections or CEOs that are paid in the millions while their patients are struggling to get appointments, while the workers are dealing with broken equipment,” union spokesperson Renee Saldana said.
- “Dave Regan and SEIU-UHW are extorting health centers by using the ballot measure process as as a way to get (the association) and health centers to agree to their demands that are entirely unrelated to Prop. 44,” said Joey Cachuela, general counsel for the primary care association, referencing the union’s president.
- “This is the second time the (the association) has attempted to use legal filings to bully the healthcare workers of SEIU-UHW into backing down from holding clinics and CEOs accountable to patients,” she said.
- Their face-off, just days before voters begin receiving their ballots by mail, comes as polling indicates Beccera holds a massive lead, signaling a steep obstacle course for Hilton’s ambitions to become California’s first Republican governor since 2011.
- “You’ve never actually had to make any money of your own,” Hilton said.
- “It’s a one-time tax, and it isn’t predictable and sustainable,” Becerra said.
- “It’s very important we have this debate — and the simple point is that the quickest way to get more money in people’s pockets is for the government to take less out,” the Republican said.
- “This is the most amazing state in the most amazing country on earth, and it’s because we’ve got this rebel spirit that we do things differently,” Hilton said.
- “We have got so much space that we could be building in,” he said.