Dreier Announces Federal Support for
LA County Healthcare System

February 7, 2003

WASHINGTON - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee and Leader of the California GOP Delegation, announced today that after months of negotiations, the federal government had reached a decision on how best to provide support for the financially strapped Los Angeles County health care system. The Center for Medicaid and Medicare Services (CMS), working with the Office of Management and Budget (OMB), has agreed to renew a key program for California, as well as provide critical funding while the County works to restructure the system. As Chairman of the California Republican Delegation, Dreier spearheaded the negotiations between county, state and federal officials.

"This agreement will help the citizens of Los Angeles County breathe a little easier," Dreier said. "It was very important that we come up with a solution that helps those in need and at the same time, improves the system. Millions of people rely on the County's health care network. While this is an important first step, we should continue to work to ensure a sustainable system that will be there to provide the care that's needed."

Under the deal reached today, CMS has agreed to renew California's Selective Provider Contracting Program for two more years. This renewal will provide the state with $150 million each year to cover health care costs, $75 million of which will go directly to Los Angeles County. Additionally, the federal government will provide an extra $50 million expressly for LA County in each year, $100 million total, and $50 million owed by the federal government to the California Healthcare Association (CHA), which CHA has pledged to LA County. CMS has also agreed to consider a plan to be submitted by California and LA County that would allow them to keep Medicaid Disproportionate Share Hospital money from hospitals which are closed or reduce services.

Dreier pointed to the unity of the Bipartisan California Congressional Delegation as one of the chief reasons the federal government became involved in the process. He also thanked CMS Director Tom Scully, Secretary of Health and Human Services Tommy Thompson, OMB Director Mitch Daniels, Congresswoman Jane Harman (D-Venice), and Los Angeles County Supervisors Mike Antonovich, Don Knabe, and Zev Yaroslavsky for their efforts to help California and Los Angeles County. "Providing accessible, quality health care for Americans is a goal shared by many in Washington, DC," Dreier said. "I'm very pleased we were able to work together to achieve a positive result for an extremely difficult problem."