Your guide to Proposition 44: Federally funded health clinic spending
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Set us as preferred Proposition 44 asks voters to require federally funded community health centers to spend at least 90% of their total annual revenue on “program services advancing their charitable purpose.” California California’s general election takes place on Novemer 3.Learn about L.A.’s city and county races as well races for state office.It applies to federally qualified health centers, community clinics that deliver primary care to underserved populations.
There are about 2,000 such safety-net clinics in California, run by either private nonprofits (in most cases) or public entities like counties, according to the Legislative Analyst’s Office.Proposition 44 would require these clinics spend at least 90% of their total annual revenue on patient care.If spending on administrative or non-healthcare functions exceeded 10% of total revenue, a clinic would have to pay a penalty equal to the amount it overspent.
Some of this money could be earned back if clinics come into compliance.There would be criminal penalties for knowingly misreporting or misclassifying expenses to get around the limits.
The text of the measure specifies only that 90% of revenue must be used for “program services advancing their charitable purpose” and does not spell out which expenditures would qualify as program-related and which would not.The task of determining which expenses fall on what side of the ledger would belong to the state attorney general.The state Department of Public Health would be permitted to temporarily waive a clinic’s spending requirements in exceptional circumstances.The measure is sponsored by the Service Employees International Union-United Healthcare Workers West, which represents workers in the healthcare industry.
SEIU-UHW West is the primary backer of Californians for Responsible Healthcare and the Yes on 44 campaign.Supporters say the measure would prevent excessive spending on executive...