Santa Teresita Hospital to Quit Medi-Cal Program

Officials at Santa Teresita Hospital in Duarte, saying they have lost millions of dollars treating Medi-Cal patients, have announced that they will drop out of the program effective Aug. 1.

The 283-bed hospital is reimbursed by the state for less than half of what it costs to care for its Medi-Cal patients, hospital Administrator Michael Costello said. The hospital lost about $1.1 million caring for Medi-Cal patients last year alone, he said.

Santa Teresita notified the state Department of Health Services last week that it will leave the program. A 120-day notification is required.

Santa Teresita was the fourth San Gabriel Valley hospital to terminate its contract since 1988. The action leaves that area with 11 acute-care hospitals under contract to treat the San Gabriel Valley’s estimated 60,000 Medi-Cal patients, state officials said.

“We have no alternative,” Costello said. “It is impossible to provide care and be paid less than the cost to deliver that care.”