logo
Federal cuts leave Los Angeles County health system in crisis

Federal cuts leave Los Angeles County health system in crisis

Los Angeles County's health system, which is responsible for the care of the region's poorest, is careening toward a financial crisis because of cuts from a presidential administration and Republican-led Congress looking to drastically slash the size of government.
President Trump's 'Big Beautiful Bill,' which passed earlier this month, is expected to soon claw $750 million per year from the county Department of Health Services, which oversees four public hospitals and roughly two dozen clinics. In an all-staff email Friday, the agency called the bill a 'big, devastating blow to our health system' and said a hiring freeze had gone into effect, immediately.
And the Trump administration's budget for the next fiscal year will likely result in a $200-million cut to the county Department of Public Health, whose responsibilities include monitoring disease outbreaks, inspecting food and providing substance use treatment.
'I'm not going to sugarcoat it. I'm not going to say we survive this,' said Barbara Ferrer, head of the public health department, in an interview. 'We can't survive this big a cut.'
Both Ferrer and Department of Health Services head Christina Ghaly warned that the federal cuts will devastate their agencies — and the patients they serve — for years to come. Employee layoffs are likely.
In April, the White House announced it was ending infectious disease grants worth billions of dollars, including $45 million that L.A. County was supposed to use to combat the spread of measles and bird flu. California has joined other states in a lawsuit fighting the cuts, and the court has issued a preliminary injunction suspending the cuts.
This month, the county public health department lost another $16 million after Trump's bill cut funding for a program educating food stamp recipients about how to buy healthy meals.
And there's more to come. The Trump administration's proposed budget for 2026 will be the biggest blow yet, Ferrer warned, yanking $200 million from her department — a 12% cut.
'I'm old. I've been around for a long time,' said Ferrer, whose work in public health dates back to the Reagan administration. 'I've never actually seen this much disdain for public health.'
Ferrer said the cuts mean she no longer has enough money for the county's bioterrorism watch program, which monitors for outbreaks that might signal a biological attack. Soon, she said, county officials may have to stop testing ocean water for toxins year round, cutting back to just half the year.
'Like, you want to swim? You want to know that the water is safe where you swim, then oppose these kinds of cuts,' she said. 'That affects everybody who goes to the beach.'
Layoffs are likely, said Ferrer. About 1,500 public health staffers are supported through federal grants. More than half the federal money the department receives is funneled to outside organizations, which would likely need to make cuts to stay afloat.
A similarly grim cost analysis is underway at the county Department of Health Services, where executives said they expect to lose $280 million this fiscal year because of the bill.
'I can't make a promise that we will be able to avoid layoffs because of the magnitude of the challenges,' said Ghaly.
Ghaly said the bill slashed the extra Medicaid money the county typically gets to cover care for low-income patients. They expect many patients might be kicked off Medicaid because of new eligibility and work requirements. The federal government is pulling back on payments for emergency services for undocumented people, meaning the county will have to foot more of the bill.
The White House did not respond to a request for comment.
Department of Health Services officials said they expect to lose $750 million per year by 2028. By then, the agency's budget deficit is projected to have ballooned to $1.85 billion.
In an attempt to pump more cash into the system, L.A. County supervisors voted on Tuesday to increase a parcel tax first approved by voters in 2002, which is expected to raise an additional $87 million for the county's trauma care network.
After a long debate Tuesday, Supervisors Holly Mitchell and Lindsey Horvath worked to direct $9 million of the parcel tax money to Martin Luther King Jr. Community Hospital, a private hospital that serves as a critical safety net for South Los Angeles residents who would otherwise find themselves in a medical desert.
Without that cash infusion from the county, the cuts in Trump's bill would have put the hospital at risk of closing, since the majority of patients in its emergency room are on Medicaid, said Elaine Batchlor, Martin Luther King's chief executive officer.
'If they've lost their Medicaid coverage, we simply won't get paid for those patients,' she said.
Martin Luther King replaced a county hospital that closed after losing national accreditation in 2005 because of serious medical malpractice, landing it the nickname 'Killer King.'
'The fact that that hospital closed in the first place I think is criminal, and I intend to do all I can to protect the integrity of the services,' said Mitchell, whose district includes the hospital and who pushed for it to get a cut of money from the parcel tax increase.
Local health providers said that changes at the state level have created additional uncertainty. The state budget for this fiscal year freezes enrollment in Medi-Cal, California's version of Medicaid, for undocumented immigrants ages 19 and older starting in January. Medi-Cal recipients ages 19 to 59 will have to pay a $30 monthly premium beginning July 1, 2027.
'Most families [we serve] are making about $2,400 to $2,600 a month. They're going to have to choose between paying their Medi-Cal fees for a family of four — that's $120 a month — or paying rent or paying for food,' said Jim Mangia, head of St. John's Community Health, who said the cuts will disrupt care for tens of thousands of low-income residents.
The St. John's clinic, which gets most of its revenue from Medi-Cal reimbursements, serves more than 120,000 patients a year, most of whom live below the federal poverty line.
If the clinic doesn't find a way to replace the lost revenue, Mangia warned, services will have to be reduced. The clinic recently started treating immigrant patients in their homes after realizing they had been skipping appointments because they feared being arrested by federal immigration agents.
'Then what we're looking at is closing several health centers,' said Mangia. 'We're looking at laying off hundreds of staff.'
At Venice Family Clinic, a community health center that serves nearly 45,000 patients annually, 80% of patients rely on Medi-Cal. Roughly half the clinic's revenue comes from Medi-Cal reimbursements.
Dr. Mitesh Popat, a family physician and head of the clinic, said that federal policy changes — especially more frequent paperwork and added work requirements — will likely push eligible patients off of Medi-Cal. He said the clinic is exploring ways to expand support for patients to navigate the paperwork and keep their coverage.
'This puts a bunch of barriers in the way of people who already have enough challenges in life,' Popat said. 'They're trying to make it, trying to survive, trying to put food on the table.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Kamala Harris phones it in at youth voters summit with two-minute video keynote
Kamala Harris phones it in at youth voters summit with two-minute video keynote

New York Post

time9 minutes ago

  • New York Post

Kamala Harris phones it in at youth voters summit with two-minute video keynote

WASHINGTON — Former Vice President Kamala Harris made a rare public appearance at a youth voters event Friday, speaking for fewer than two minutes in a pre-recorded video address about the need to stay 'in the fight' — without giving any indication of her own future ambitions. The activist summit, which appeared to be sparsely attended, was aimed at 'building political power for Gen Z' and featured speeches from Harris, former House Speaker Nancy Pelosi (D-Calif.) and Rep. Ro Khanna (D-Calif.). Unlike the two House Democrats, Harris chose not to give her remarks in person. 'Keep building your political power, keep building community, keep building coalitions, keep challenging the status quo,' she said to the group gathered in the nation's capital. 'And born out of our love for our country, keep fighting to build a country and a nation. That works for everyone. And I look forward to continuing in the fight alongside you. You take care.' 3 Harris urged youth voters to stay 'in the fight' in a short, pre-recorded message played during the summit. Voters of Tomorrow Voters of Tomorrow senior director Kaya Jones had preceded Harris in the line-up and suggested actions by the Republican-held White House and Congress had taken a toll on youth organizing. 'The last few months have been really rough, and, um, yeah, let's just pause for that,' she said, leading to a brief moment of silence. Harris struck a similar tone in her remarks, saying: 'Your generation has grown up on the front lines of so many crises — from COVID and the climate crisis to gun violence and mental health.' 'It is critically important that we have organizations such as this who understand that we must be intentional about lifting up our young leaders and encouraging your ambition,' she added. 3 Pelosi predicted that Democrats would retake the House of Representatives after the 2026 midterm elections. FOX News After a landslide loss to Trump in 2024, Harris pledged in her concession speech to 'never give up the fight' — but has yet to indicate whether she will enter the California governor's race next year or the presidential contest in 2028. 'On the campaign, I would often say, 'When we, fight, we win.' But here's the thing: Sometimes the fight takes a while. That doesn't mean we won't win,' she added after losing all seven swing states to Trump and becoming the first Democratic nominee in 20 years to lose the popular vote. 'We must stay in the fight, every one of us,' Harris also told students during a speech at Prince George's County Community College in Maryland before leaving office. 'And I ask you to remember the context in which you exist.' 3 'I look forward to continuing in the fight alongside you,' Harris said in the video. Voters of Tomorrow Pelosi, 83, said Friday she had 'no doubt that we will win the election with the House of Representatives' in 2026. 'By October — certainly by November, but by October, we will have — with the help of so many people working — we'll have taken what's his name's numbers down,' Pelosi said, eliding Trump's name in a pointed slight. Public polling shows the former vice president still at the front of the Democratic primary pack, with former Transportation Secretary Pete Buttigieg seen as the second-leading contender.

Trump's tariff plan seems to be working — proving all the naysayers wrong
Trump's tariff plan seems to be working — proving all the naysayers wrong

New York Post

time9 minutes ago

  • New York Post

Trump's tariff plan seems to be working — proving all the naysayers wrong

For all the 'sky-is-falling' cries over President Donald Trump's tariffs, it looks like his strategy may be working — just as his Aug. 1 deadline nears. In the past week, the Trump folks struck deals with Japan, Indonesia and the Philippines — and may be on the verge of a deal with Europe: On Friday, the prez cited a 50-50 chance of reaching an agreement with the European Union. These developments — on top of previous deals with Vietnam, the United Kingdom and a framework on rare-earth exports and tech restrictions with China — go a long way toward standing up Trump's vision for the international economy, with better terms for America. And at least so far, no catastrophic fallout. Heck, the nation looks poised to benefit enormously on several fronts. Trump's deals in Asia, for starters, reopen US access to cheap markets, sidestepping China, our greatest economic and military rival. Indonesia and the Philippines will pay 19% tariffs on their exports to the United States and levy 0% tariffs on more than 99% of US goods. Japan will see 15% tariffs and invest more than half a trillion dollars into the US economy. Washington will also slap fewer restrictions on Indonesian, Filipino and Japanese goods, everything from cars and clothes to electronics and rubber. And now EU officials are signaling their support for a deal that would mirror the one Trump made with Japan — reciprocal tariffs of 15%. Notably, the EU includes 27 countries in a shared common market, representing the largest singular trading bloc for the United States. The EU deal would clearly benefit US consumers looking to buy, say, French wines or German cars, and also US producers seeking wider access to the European markets. Keep up with today's most important news Stay up on the very latest with Evening Update. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters Meanwhile, the resolution of trade issues with so many countries will calm markets and bring confidence and stability to the business community. As for the predicted inflation, it's nowhere to be seen: June's consumer price index came in at a reasonable 2.7%. Recall it hit 9% under Joe Biden. That's partially because corporations, unsure of whether high tariffs will remain permanent and nervous about hiking prices, have absorbed most of the tariffs' costs, at least for now. More good news: The tariffs brought in $64 billion in revenue for the government in just the first three months since Trump's April 2 'Liberation Day' announcement. He's suggested issuing 'rebates' based on that haul, but far better to use the new revenue to pay down the runaway national debt. Yes, there's plenty more to do: Team Trump needs to finalize agreements with Canada, India and Mexico, along with the EU, and numerous smaller countries, before the president's across-the-board reciprocal tariffs hit Aug. 1. So considerable uncertainty remains. But clearly the signs are good, at least so far — despite all the doomy predictions.

FEMA denying some funding after floods
FEMA denying some funding after floods

The Hill

time9 minutes ago

  • The Hill

FEMA denying some funding after floods

Energy & Environment The Big Story FEMA denying some funding after floods A review of federal documents by The Hill shows that the administration denied such 'hazard mitigation' funds to states after 16 out of 18 flood disasters during the Trump presidency, with both of the approvals coming before mid-March. After the deadly Independence Day floods, the administration declined to provide Texas with access to a tranche of FEMA funds aimed at heading off the next disaster — money intended to pay for things such as warning systems, tornado shelters and anti-flood measures. It's not alone. In May, children in a Missouri elementary school sheltered from a tornado that shattered windows and ripped gutters off the building inside a safe room purchased with hazard mitigation money issued after the deadly 2011 Joplin tornado. Though the Trump administration approved Missouri's disaster declaration, it refused the hazard mitigation funds the state requested to buy generators and more outdoor warning sirens, state officials told The Hill. Missouri is appealing that decision. In neighboring Oklahoma, the Biden administration had in November approved hazard mitigation funding for wildfires and straight-line winds. But even as those funds went out, more wildfires, driven by straight-line winds, were raging across the Sooner State. President Trump issued a disaster declaration on the last day of the weeklong emergency — but denied hazard mitigation funding. It was the first time in at least 15 years that Oklahoma wasn't approved for requested hazard mitigation, according to state emergency management officials. This pivot — which breaks long-standing federal precedent — comes amid steep Trump cuts to FEMA, which he has also talked about eliminating entirely, as well as cuts to the Department of Housing and Urban Development (HUD) and the federal forecasting and research apparatus. Welcome to The Hill's Energy & Environment newsletter, I'm Rachel Frazin — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains. Did someone forward you this newsletter? Subscribe here. Essential Reads How policy will affect the energy and environment sectors now and in the future: NOAA places 2 high-ranking officials on leave The Trump administration has placed two high-ranking officials at the National Oceanic and Atmospheric Administration (NOAA) on leave amid a series of efforts to make cuts at the agency. Full Story US signs MOU with Mexico on Tijuana River sewage crisis The U.S. and Mexico on Thursday took collaborative steps toward curbing a long-standing, cross-border environmental crisis: the unfettered sewage flow from Tijuana into Southern California. Full Story Sanders, Democrats push effort to kill 'handouts' for fossil fuels in Trump's 'big, beautiful bill' Sen. Bernie Sanders (I-Vt.), Rep. Ilhan Omar (D-Minn.) and other critics of the Trump administration's environmental policies are renewing a push for legislation that would end energy subsidies that the critics say will 'destroy the planet.' Full Story What Others are Reading Two key stories on The Hill right now: 'South Park' creators double down on episode skewering Trump 'South Park' creators Trey Parker and Matt Stone had a simple response to the furor the often-controversial show stoked this week with an episode showing President Trump in bed with Satan and making fun of what they depicted as the president's small genitals. Read more Third court blocks Trump birthright citizenship order nationwide after Supreme Court decision A third court ruled Friday that President Trump's birthright citizenship executive order cannot go into effect across the country, following the Supreme Court's decision last month clawing back nationwide injunctions. Read more

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store