Loans tide over L.A. County health clinics

Community clinics in Los Angeles who rely on Medi-Cal as their primary payor have been dealing with reimbursement shortfalls due to California's budget problem. Cash flow from payor reimbursements is the lifeline of these clinics and they can be especially susceptible when a small number of payors comprise a large portion of their business. Lines of credit and practice staff cuts are some of the short term actions being made to bridge the gap until normal reimbursements return. "Stung by a budget stalemate that is costing Los Angeles County community clinics more than $330,000 a day in reimbursements, many clinic managers have been forced to take out loans and contemplate cuts to staff and services." Small rural practices and health clinics with less access to capital in the interim, likely will find it even more difficult to keep their doors open.