Despite concerns from some hospitals about a possible loss of funding, the county Board of Supervisors voted Tuesday to review the way the county allocates revenue from a 2002 parcel tax to area medical centers in light of federal cuts to such facilities and the anticipated loss of Medi-Cal coverage for thousands of residents.
The board unanimously approved a motion by Supervisor Holly Mitchell calling for the hiring of a consultant to review the current formula for allocation of funds from Measure B, a voter-approved parcel tax designed to boost funding for trauma hospitals and emergency medical services.
According to Mitchell’s motion, the tax generated nearly $340.6 million in the 2024-25 fiscal year. Through a county formula, the money is allocated annually to county hospitals and medical centers with trauma centers. Any excess funds are then doled out to other private hospitals without trauma centers.
Mitchell contends in her motion, however, that given changing circumstances of federal funding cuts and policies impacting Medi-Cal eligibility, possibly causing a loss of coverage for up to 1.1 million county residents, “it is critically important that Measure B funds be allocated wisely and equitably reflecting the increased pressure on hospital trauma centers and emergency rooms that serve larger populations of Medi-Cal patients and those who lost Medi-Cal eligibility under H.R. 1 (the federal budget bill).”
Of particular concern to Mitchell is Martin Luther King Jr. Community Hospital in Willowbrook, a non-trauma center private hospital that has traditionally been left to collect a portion of excess Measure B funds not already allocated to other facilities.
Mitchell spoke at a rally Tuesday morning with representatives and supporters of MLK and other hospitals facing increasing financial pressures.
According to her motion, a report by the county CEO in April concluded that the county could consider three options surrounding Measure B funding — maintaining the current formula; allocate increases in ongoing Measure B funding using “needs-based criteria”; or allocate one-time funding using needs-based criteria.
Mitchell’s motion calling for a review of the funding formula sparked opposition from various hospital officials across the area, with most fearing a potential loss of the annual ongoing funding they receive from the measure.
“Ultimately, we believe Measure B funds are already being put to their highest and best use,” Children’s Hospital Los Angeles President/CEO Paul S. Viviano wrote in a letter to the board. “These investments support lifesaving trauma services, sustain specialized capabilities and ensure access to care for some of the county’s most vulnerable patients.”
Mitchell and other board members stressed during Tuesday’s meeting that the motion called only for a consultant study of possible adjustments to the funding formula. And they also insisted it was not a signal that hospitals would have their normal funding threatened.
The proposal “does not take resources away from trauma hospitals,” Mitchell said.
Supervisor Kathryn Barger said she was “frustrated” that some hospitals were fearing a loss of funding, insisting that was “not the intent of the motion.”
“I think it is an opportunity for us to hit the reset button and take a look at how we’re allocating” resources, she said.
Supervisor Janice Hahn agreed, saying, “We want to make sure they (trauma hospitals) are all healthy and stabilized.”
The motion calls for a report back in 180 days.