CEO Messages

Hospital Council held our first in-person board meeting of the year at the Kimpton Sawyer Hotel in Sacramento on April 8-9. While we focused on critical issues facing Hospital Council members, such as financial challenges for hospitals and key regional projects, we started our meeting with a presentation and roundtable discussion with Stephen “Shed” Shedletzky on the principles in his book Speak-Up Culture. The underlying principle discussed was that organizations with speak-up cultures are safer, more innovative, more engaged, and better performing than their peers. That discussion set the tone for our meeting to create a safe, speak-up environment for our member hospitals and at our regular board meetings where significant issues are being discussed. 

Throughout California, hospital labor and delivery units are closing, casualties of a perfect storm of record-low birth rates, health care workforce shortages, and low Medi-Cal reimbursement. Closing maternity services is never an easy decision, and yet it’s one more and more hospital leaders are having to make.   Twelve California counties have no hospital labor and […]

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.

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: 

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.

Hospitals are important to the fabric of our communities. They provide a refuge for people during times of need, and it’s important that we recognize the people behind them. Throughout all the unexpected disasters that life throws at us — wildfires, earthquakes, or even a pandemic — health care workers have continued to show up for their patients.

Nov. 8, 2023, marks the five-year anniversary of the Camp Fire in Butte County, the deadliest and most destructive wildfire in California history. The fire started when a faulty electrical transmission line ignited. The flames were fanned by high winds and spread quickly. What started as a small blaze forever destroyed a town and not only altered the landscape but the lives of everyone impacted by this disaster.