California voters overwhelmingly reject union-backed Prop. 44 crackdown on community health clinics

California voters delivered a crushing blow to a controversial ballot measure that would have forced community health clinics to spend at least 90% of their revenue on patient care, rejecting the proposal amid dire warnings it could shutter hundreds of facilities.Proposition 44 went down in flames Tuesday, with nearly 82% of voters opposing the measure as votes continued to be counted.The landslide defeat marks another election setback for SEIU-United Healthcare Workers West, the powerful labor union behind the initiative, which argued that taxpayer-funded clinics were funneling too much money toward bloated executive salaries and other expenses instead of patients.The proposal would have required nonprofit Federally Qualified Health Centers to devote at least 90% of their annual revenue to healthcare services or face hefty state penalties.Clinics would have been limited to spending just 10% on administrative and other expenses, which would have been a dramatic shift from the roughly 80% they currently spend on services, according to the nonpartisan Legislative Analyst’s Office.Supporters insisted the measure would crack down on wasteful spending and hold clinic executives accountable for how public money is used.“Money should not be directed towards excessive executive compensation or other non-essentials that we have seen within … our clinic system,” union spokesperson Renée Saldaña told CalMatters.But opponents painted a far more alarming picture, warning the sweeping restrictions could devastate California’s healthcare safety net, which serves an estimated 7 million low-income residents.An analysis commissioned by opponents estimated clinics could face $1.7 billion in penalties during the first year alone, potentially triggering widespread closures and service cuts.“By shutting down clinics, Prop.44 will force millions of patients into already overcrowded emergency rooms — increasing wait times for everyone,” Dr.

Susanne J.Spano, president of...