Two nonprofit organizations are suing Fresno, Calif.-based Community Health System, alleging it has misused $1 billion in tax dollars intended to serve low-income patients. The health system has called the claim inaccurate and baseless.
In the lawsuit, filed Aug. 7, Cultiva La Salud and Fresno Building Healthy Communities said the health system directed public funding to Clovis (Calif.) Community Medical Center while Fresno (Calif.) Community Regional Medical Center was left with outdated equipment, insufficient operating rooms and chronic understaffing.
The nonprofits said the Hospital Quality Assurance Fee and the Disproportionate Share Hospital programs require hospitals receiving those funds to spend it on Medi-Cal patients. The health system has allegedly spent that funding on Clovis Community Medical Center, "which serves a much wealthier, whiter and healthier population, and far fewer Medi-Cal beneficiaries," according to the complaint.
"Community Health System is deeply committed to serving Central Valley patients, particularly those insured by Medi-Cal, so it’s safe to say we are extremely disappointed in this baseless lawsuit," Michelle Von Tersch, senior vice president of communications and legislative affairs for the health system, wrote in an Aug. 7 statement. "Addressing inaccurate claims only serves to take time and resources away from our non-profit healthcare mission.”