Santa Clara Valley Healthcare system faces significant funding cuts leading to over 100 medical worker job losses and essential service reductions. County Executive James Williams reported a projected budget deficit for the 2026-27 fiscal year, largely due to diminished federal healthcare funding from the 'Big Beautiful Bill.' Roughly 30% of the county's budget derived from compromised programs like Medicare and Medicaid. The state government further complicates matters by adding its cuts to federal reductions, exacerbating the fiscal challenges facing public hospital systems. Supervisor Otto Lee emphasized that Medicaid cuts will broadly affect the entire healthcare system.
"There's a lot the state can do-they certainly should not be exacerbating the federal impacts," Williams said. "The most recent budget adopted by the state layers its own medical cuts on top of federal cuts, and that is very concerning. The state needs to take care of its public hospital systems."
"With the expansion of our health and hospital system after the acquisition of Regional Medical Center, we're now serving more residents who are targeted by these cuts," Lee told Metro Silicon Valley. "Medicaid cuts will impact our entire system of care and will be felt by everyone in our community-not just our Medicaid patients."
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