{"id":349543,"date":"2025-12-15T05:51:30","date_gmt":"2025-12-15T05:51:30","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/349543\/"},"modified":"2025-12-15T05:51:30","modified_gmt":"2025-12-15T05:51:30","slug":"alameda-health-system-could-lose-100m-through-federal-cuts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/349543\/","title":{"rendered":"Alameda Health System could lose $100M through federal cuts"},"content":{"rendered":"

When President Donald Trump signed H.R. 1<\/a> \u2014 the \u201cBig Beautiful Bill\u201d \u2014 in July, he touted<\/a> it as one of the largest tax cuts in U.S. history. The law would restore \u201cfiscal sanity,\u201d he said, by eliminating over $1.5 trillion in federal spending. And it boosted military spending while ramping up the hiring of ICE agents, among other Republican priorities.<\/p>\n

But healthcare advocacy groups warned from the start that the budget bill would also enact unprecedented cuts to Medicaid<\/a>, the nation\u2019s health insurance program for roughly 70 million people who have limited incomes and resources. The Center for Medicare Advocacy<\/a> called H.R. 1 \u201cthe largest rollback of federal support for health care in American history,\u201d and the California Budget and Policy Center wrote in an analysis<\/a> that the law \u201cstrips billions in federal support\u201d for healthcare providers that rely on Medicaid.<\/p>\n

That rollback is now starting to affect the Alameda Health System, which operates Alameda County\u2019s public safety net hospitals and clinics, like Highland in Oakland. The system stands to lose up to $30 million next year, $100 million in 2027, and a projected $150 million in 2028 from the Medicaid cuts, according to AHS<\/a>.<\/p>\n

Last Friday, word began to spread among employees that some staff jobs across health centers were being eliminated.<\/p>\n

The healthcare system\u2019s administration confirmed to The Oaklandside that AHS\u2019 board of trustees decided in November to shed hundreds of jobs. The statement did not say which positions will be affected. But AHS acknowledged that the downsizing is a result of changes at the federal level.<\/p>\n

\u201cDue to these significant external cuts in funding, AHS must prepare itself for a reduction in the labor force,\u201d the health system\u2019s administration said today. AHS said it will offer severance and extra retirement benefits for employees who volunteer to leave. \u201cAdditionally, we have identified 372 positions that are projected to be impacted. This number may change as the public funding environment changes. The federal and state health care fiscal environment continues to be fluid.\u201d<\/p>\n

SEIU 1021, which represents many AHS employees, is currently in talks with the administration about which specific jobs will be cut and how services could be impacted.<\/p>\n

\u201cThe union is heartbroken not just for our members, but for what this will do to the community,\u201d Veronica Palacios, a Highland worker and former union chapter president, told The Oaklandside on Monday. \u201cThis will affect our whole community. It will affect our loved ones and it will affect healthcare moving forward.\u201d<\/p>\n

Alameda Health System relies heavily on Medicaid
\n\"\"Ouside the Eastmont Mall August 20, 2020. Photo: Pete Rosos<\/p>\n

The Alameda Health System, which has a $1.4 billion budget and approximately 5,000 employees, operates the Wilma Chan Highland Hospital Campus and Eastmont Wellness center in Oakland, Alameda Hospital, San Leandro Hospital, St. Rose Hospital, the John George Psychiatric Hospital, and other clinics and care centers across Alameda County. It is one of the primary health care providers for the roughly 242,000 Alameda County residents who are enrolled in Medi-Cal, the state Medicaid program funded mostly by the federal government.<\/p>\n

Because AHS cares for the county\u2019s low-income communities, it is extremely reliant on the Medicaid program. Roughly 60% of the system\u2019s revenues come from Medi-Cal.<\/p>\n

In August, one month after H.R. 1 was signed into law, the hospital system\u2019s executive team and trustees were told at a board meeting<\/a> that they would soon be hit by two provisions in the law.<\/p>\n

First, new work requirements for Medicaid recipients would \u201cthrow millions off Medi-Cal\u201d statewide, including thousands of Alameda County residents who are AHS patients. Medicaid recipients would also be required to re-verify their eligibility for the program every six months.\u00a0<\/p>\n

When similar rules were implemented in Arkansas seven years ago, about 10% of enrollees subject to the work requirements lost their Medicaid coverage, according to a National Institutes of Health study<\/a>. A similar drop in Alameda County is projected to cut into the Alameda Health System\u2019s revenues by as much as $90 million, according to an AHS analysis<\/a>.<\/p>\n

Another complex feature of the new federal rules means that the state of California cannot make additional payments to AHS above a certain threshold for Medicaid-provided care. AHS received around $180 million<\/a> in these types of state payments this year. This cap could mean an additional loss to AHS of $20 million in 2028, rising to $60 million in 2030.<\/p>\n

In November, AHS Chief Financial Officer Kim Miranda told the hospital system\u2019s trustees that they need to identify $235 million in reductions by 2027.<\/p>\n

Palacios, the Highland Hospital worker, said all kinds of AHS staff will be affected, including nurses, nurse assistants, social workers, physicians, and therapists.<\/p>\n

\u201cImpacted employees are from all departments and disciplines across the system including management, support and administrative services, and clinical care,\u201d the administration said in a statement.<\/p>\n

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