California freezes Medi-Cal payments to thousands of healthcare facilities in July.
Medical providers who care for low-income Californians are scrambling to find funds to keep their doors open, as the failure of lawmakers to pass a budget forces the state to halt payments to them.
Most of the facilities have no immediate plans to turn away patients, the providers warn that a budget stalemate that drags on through the summer will affect care. In the meantime, they are turning to banks, foundations and their own reserves for emergency cash to pay the bills.
During last year's budget standoff, many providers reported paying astronomical interest rates for temporary credit. This year promises to be just as tough. Banks are financially squeezed and reluctant to offer bridge loans. Medical Accounts Receivable (MAR) funding may be the answer for some.
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