Last week, the California Hospital Association filed a proposed ballot initiative that would ensure hospital funding meant to pay for the care of Medi-Cal beneficiaries is not diverted for other purposes, the Sacramento Business Journal reports.
In 2009, then-Gov. Arnold Schwarzenegger and the state Legislature approved legislation to create a framework for a hospital fee that could draw down an estimated $2.6 billion in federal matching funds for Medi-Cal.
The state planned to allocate most of the funding back to hospitals, with a portion going toward children's health care coverage.
However, the state in recent years has diverted a portion of the fee to the state's general fund to help address budget problems.
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