USC Verdugo Hills Hospital required to pay more than $1.5 million in charity-care costs
USC Verdugo Hills Hospital is one of three California hospitals ordered by California Atty. Gen. Xavier Bacerra last week to pay roughly $1.6 million to local nonprofits after denying the hospital’s January request for modification to reduce the hospital’s charity care spending obligation under state law.
According to California code, hospitals are required to maintain a minimum amount of annual charity care equal to or exceeding the annual historical charity care average as determined by the attorney general, using the hospital’s previously filed reports to the Office of Statewide Health Planning and Development, or OSHPD, as they relate to charity care costs.
In a letter last week to hospital officials from the Office of the Attorney General, based upon USC Verdugo Hills Hospital’s annual financial disclosure report submitted to the OSHPD for fiscal year 2017, the hospital only provided $421,518 in charity care.
“USC Verdugo Hills Hospital is required to pay a total of $1,652,046 to one or more tax-exempt entities that provide direct medical care services to residents in USC Verdugo Hills Hospital’s service area,” the letter states.
In a statement released on Thursday, USC Verdugo Hills Hospital officials said the facility will meet the demands outlined by the Office of the Attorney General.
“As a strong community partner, we also plan to continue serving the community’s needs through free public health seminars and health screenings, partnerships with local nonprofit organizations, and numerous additional no cost or low-cost resources for patients and our neighbors,” according to the statement.
The hospital has until June 30 to prove the charitable payments to nonprofits have been made.
Twitter: @JeffLanda
