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RCB MEDI-CAL 01.JPGHealth centers and community clinics that provide services for low-income Californians appear to be the latest casualty of the late state budget.

More than 1,000 health centers and community clinics that serve recipients of the state's public health insurance program are scheduled to stop receiving Medi-Cal payments as early as next week because a reserve of state and federal funding used during a budget impasse has run dry.

Dozens of types of health service providers, including adult day health care centers, home heath agencies and free community clinics, receive Medi-Cal payments from the $2 billion Medical Providers Interim Payment fund when the budget is not enacted by the July 1 deadline. That well is expected to be depleted today. As of next week, Medi-Cal claims filed by those providers will not be paid until the budget is passed.

Medi-Cal payments typically represent 50 percent to 80 percent of total revenue for the affected health centers and community clinics. Community health care advocates say stopping the revenue stream for low-income health care providers still reeling from last year's deep spending cuts could have devastating effects.

"Our clinics and health centers are facing the prospect of not being able to meet payroll and pay their employees," said Carmela Castellano-Garcia, president and CEO of the California Primary Care Association. "If the budget stalemate continues there could be even more dire results including the closure of clinics."

A Department of Health Care Services spokesman said the providers can continue to see patients and send claims for processing, but payments will be held until the budget is passed.

Not all providers that receive Medi-Cal payments will be affected. Medi-Cal reimbursements for certain types of Medi-Cal providers, including hospitals and nursing homes, must be paid in accordance with state and federal laws and the federal stimulus act.

See a full list after the jump of provider types receiving MPIP funds that will not receive payments if a budget is not passed.

  • Adult Day Health Care Centers
  • Assistive Device & Sick Room Supply Dealers
  • Blood Banks
  • Clinical Laboratories
  • Fabricating Optical Lab. PIA
  • Home Health Agencies
  • Ground Medical Transportation
  • Genetic Disease Testing
  • P.L. 95-210 Rural Health Clinics & FQHC's
  • Air Ambulance Transportation Services
  • Certified Hospice Service per AB 4249
  • Free Clinics
  • Community Clinics
  • Chronic Dialysis Clinics
  • Multi-specialty Clinics
  • Surgical Clinics
  • Exempt from Licensure Clinics
  • Rehabilitation Clinics
  • County Clinics Not Associated with Hospital
  • Birthing Centers - Primary Care Clinic
  • Clinic - Otherwise Undesignated
  • Alternative Birth Centers - Specialty Clinics
  • Breast Cancer Early Detection Program (BCEDP) (EWC)
  • Expanded Access to Primary Care Clinics
  • Local Education Agency
  • Home and Community Based Services- Nursing Facility
  • Employment Agency
  • Personal Care Agency
  • Mental Health Inpatient
  • Multipurpose Senior Services Program (MSSP)
  • Tribal Health Program
  • CCS-Genetically Handicapped Person Program Non-Institutional
  • CCS-Genetically Handicapped Person Program Institutional
  • Residential Care Facilities for the Elderly (RCFE)*
  • Private Non-Profit Proprietary Agency

PHOTO CREDIT: Jane Maxon, 72, of East Sacramento is supported by physical therapy aide Greg Johnson as he helps her walk as part of her therapy at Robertson Adult Day Health Care Center in Sacramento. Photo taken June 24, 2008. Renée C. Byer/ Sacramento Bee



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