Federal government pledges $250 million to LA health care system

LOS ANGELES (AP) A network of hospitals that officials say would provide California's first line of emergency care in the event of a terrorist attack has received a $250 million cash infusion from the federal government that officials say will keep it from having to cut crucial services and even close some facilities.

The $250 million is provided for in an agreement that also extends a long-standing waiver allowing direct payments to hospitals that treat the poor and uninsured covered by California's Medicaid program.

The agreement, announced Friday by U.S. Health and Human Services Secretary Tommy Thompson and Gov. Gray Davis, was considered crucial to avoiding cuts at some 250 hospitals.

``These hospitals are the bedrock of the statewide safety net,'' said California Health Secretary Grantland Johnson. ``Heaven forbid if we are to have a terrorist attack. These hospitals would bear the burden of first response.''

Federal, state and local officials worked for months on the agreement, which includes two-year coverage and a total of $1.8 billion in supplemental payments for 2003. The federal funding will be in addition to a $170 million-a-year property tax hike approved by county voters last fall to keep open trauma centers and emergency rooms.

``This agreement will allow uninterrupted funding for hospitals that provide critical services to California's neediest citizens,'' Thompson said.

The money is expected to avert cuts that had been slated for later this year. Among them were the closures of Olive View-UCLA Medical Center in Sylmar and Harbor-UCLA Medical Center in Torrance. So far, 16 health centers have been closed over the past year because of a budget shortfall.

Davis and other state officials hailed the agreement, reached between Democrat and Republican administrations, as a triumph of health care concerns over partisan politics.

``It will provide the essential services Californians need and deserve,'' said Davis.

The federal funding falls far short of the $1.4 billion the county asked for last year.

Among those critical of the plan was county Supervisor Michael Antonovich, who issued a statement calling for more systematic reform.

``The action is a short-term financial solution to Los Angeles County's long-term health crisis,'' Antonovich said. ``Real reform to our system can only be achieved through long-term solutions.''

(Copyright 2003 by The Associated Press. All Rights Reserved.)