District Hospitals Could Face Closure over Medi-Cal Reimbursement Cuts

Within the next few weeks – even days – the hospital that has been saving lives in this rural Plumas County community since 1910 may itself face mortality.

Eastern Plumas Health Care is confronting a combination of reductions in its Medi-Cal reimbursements that amount to as much as 25 percent of the total, said Tom Hayes, administrator of the 75-bed hospital.

In addition to a $1.3 million annual cut to the federal Medicaid program, called Medi-Cal in California, the state Department of Health Care Services is demanding a $2.4 million repayment of funds already issued retroactive to 2011.

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