California Today

Santa Clara County Healthcare Faces $1B Medicaid Cuts

22 May 2026 11:00

Santa Clara Valley Healthcare, the second largest public hospital system in California, is facing a $1 billion shortfall due to Medicaid cuts in HR-1. CEO Paul Lorenz discusses the challenges and the system's commitment to the community.

- The cuts represent a quarter of the system's operating budget. - The system serves one in four residents in Santa Clara County.

- Lorenz calls for state recognition of public hospitals as healthcare backbone. - Community support through Measure A is only part of the solution.

Despite the financial threat, Lorenz emphasizes that the system will not disappear due to the high community need, but it must make difficult decisions to sustain care.

Tags

Morgan HillhealthmedicinepoliticsmoneySanta Clara CountyWarningLocalMoney