Kaweah Health to build a new 240-room tower by 2030

“There is no funding coming from the federal or state government [to comply with SB 1953]Herbst said. “Every hospital is on its own.”

For the first time in recent history, more than half of California’s hospitals are losing money. California hospitals combined lost more than $20 billion in 2020 and 2021; Even after accounting for more than $8 billion in federal relief, hospitals experienced a loss of $12 billion. Mertz said Kaweah Health lost $85 million between March 2020 and March 2022 as increased supply costs and a growing need for personal protective equipment came at a time when hospitals were forced to shut down their primary sources of income including elective surgeries and outpatient services. Compounding the financial problems were the hospital running at or near capacity during a statewide period and a shortage of nurses in quarantine, taking sick and mental days and leaving the industry. Kaweah Health spent $15 million on travel nurses in 2018-2019, long before the pandemic began.

“We spent a huge amount of money to fill the vacancies,” said Meretz.

Even before the pandemic, public hospitals like Kaweah Health, which are located in underserved areas, were struggling with low reimbursement rates for low-income Medi-Cal patients and uninsured patients in the emergency department. These reimbursement rates have not increased in 10 years, and the pace of inflation, combined with increases in expenses and losses from the COVID-19 virus, means that communities of color (two-thirds of Medi-Cal recipients are non-white). The pandemic needs more relief, according to the CHA. About 54.6% of Tulare County residents are enrolled in Medi-Cal, the highest rate in the state, according to the US Census Bureau’s annual American Community Survey.

Herbst said the CHA is continuing to pressure the state to push the deadline from seven to 10 years down the road to give hospitals more time to recover financially from the pandemic and develop strategies for how to modify or replace beds in non-compliant buildings.

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