Chomp and Salinas Valley Memorial Hospital hit with Spending Growth Cap

The California Board of Affordable Healthcare came down with a decision on Tuesday to put a spending growth limit on 8 California Hospitals, 2 of theme here on the Central Coast. Chomp and Salinas Valley Memorial Hospital now being identified as high cost hospitals, due to the facilities being in the 85th percentile of inpatient services income for 3 out of 5 years from 2018-2022.

Now, their spending growth targets are being lowered from 3.5% like all other California Hospitals down to 1.8% in 2026, 1.7% in 2027 and 2028, and 1.6% in 2029. If the hospitals spend more than this target, there could be financial penalties down the road.

CHOMP and Montage Health have responded to decision with concern, saying "We are deeply concerned by the recent decision from the Office of Health Care Affordability (OHCA) regarding hospital spending limits. This outcome, along with other ongoing actions at the federal and state levels, may have unintended consequences that could affect the quality and availability of care in Monterey County.​ We understand that health care costs are a significant burden for many in our community. That’s why we are deeply committed to finding practical, sustainable ways to reduce expenses without compromising the high-quality care and access the community has come to expect and deserves."

The Office of Affordable Healthcare released a report in February alleging that both hospitals charged patients 2 to 3 times more than other California Hospitals. Natividad Medical Center was also mentioned in that report.