JoAnne Obata

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In the 1993 film Groundhog Day, Bill Murray plays a man who repeats the same day over and over, hoping for a different outcome. As Groundhog Day approaches next week on Feb. 2, it may seem a little like the movie as many issues our hospitals previously faced are once again front and center this year. From seismic issues to ambulance patient offload times, regulatory oversight and overreach issues, to challenges with payers, many issues are repeating. The reality is they are resurfacing in a different environment, as hospitals confront escalating financial challenges, worsening workforce shortages, and an ever-increasing demand for health care services.

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January is a time filled with hope as we look ahead to the new year, but it’s important to reflect on the past so we don’t repeat the same mistakes. Jan. 3, 2024, marked the one-year anniversary of the closure of Madera Community Hospital. As the only general acute care hospital in Madera County, its closure drew attention to the significant financial challenges that most California hospitals face. Before Madera’s closure, many elected officials wrongly believed hospitals were flush with money and too big to fail, but the reality is that an estimated one in five California hospitals is at risk of closure, which means greater difficulty for patients to access health care.

What happened to Madera Community Hospital could happen elsewhere as hospitals in California continue to face major challenges, including: 

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As the Hospital Council team looks back on everything our hospital members have accomplished this past year, the first thing that comes to mind is the word resilience. Unfortunately, we started the year with the closure of Madera Community Hospital on Jan. 3, which drew attention to the significant financial challenges that hospitals face in California. Before Madera’s closure, many elected officials wrongly believed hospitals were flush with money and too big to fail, but the reality is over half of California’s hospitals have negative margins.