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Palo Alto, California, Measure F, Healthcare Cost Regulations (November 2018)

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Local ballot measure elections in 2018
Measure F: Palo Alto Healthcare Cost Regulations
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The basics
Election date:
November 6, 2018
Status:
Defeatedd Defeated
Topic:
Local healthcare
Related articles
Local healthcare on the ballot
November 6, 2018 ballot measures in California
Santa Clara County, California ballot measures
See also
Palo Alto, California

A measure designed to regulate healthcare costs was on the ballot for Palo Alto voters in Santa Clara County, California, on November 6, 2018. It was defeated.

A yes vote was a vote in favor of limiting healthcare charges to 115 percent of the costs of direct patient care by requiring healthcare providers to supply rebates or cost reductions to those who pay for or are financially responsible for patient services when the predetermined cost is exceeded.
A no vote was a vote against limiting healthcare charges to 115 percent of the costs of direct patient care by requiring healthcare providers to supply rebates or cost reductions to those who pay for or are financially responsible for patient services when the predetermined cost is exceeded.

The initiative was known by proponents as the Palo Alto Accountable and Affordable Health Care Initiative. The measure would limit the amount charged by healthcare providers, including Stanford Health Care and Palo Alto Medical Foundation, and require rebates to the payers for healthcare services of any amounts above the allowed 115 percent of the costs of direct patient care.[1]

Election results

Palo Alto, California, Measure F, Healthcare Cost Regulations (November 2018)

Result Votes Percentage
Yes 6,905 23.51%

Defeated No

22,463 76.49%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[2]

Shall the Palo Alto Municipal Code be amended to regulate and limit the amount that hospitals, medical clinics and other health care providers in Palo Alto may charge patients or other individuals, primary insurers, secondary insurers, and other payers, excluding government payers?[3]

Full text

The full text of the measure is available here.

Background

The SEIU-UHW West, a labor union based in California, backed a statewide ballot initiative and two local ballot initiatives designed to limit healthcare costs. Proposition 8, the statewide initiative, would have required dialysis clinics to issue refunds to patients or patients' payers, such as insurance companies, for revenue above 115 percent of the costs of what the initiative termed direct patient care and healthcare improvements. The SEIU-UHW West also proposed ballot initiatives similar to Proposition 8 in Ohio and Arizona, but neither of the initiatives were certified for the ballot.[4]

The two local initiatives were on the ballot in Livermore and Palo Alto. The SEIU-UHW West proposed additional local initiatives in Emeryville, Pleasanton, Redwood City, and Watsonville, but those initiatives did not make the ballot. Both Livermore Measure U and Palo Alto Measure F were designed to limit healthcare charges to 115 percent of the costs of what the initiatives termed the reasonable cost of direct patient care. Proponents aimed to require healthcare providers within the local jurisdictions to provide rebates or cost reductions when billing exceeds the predetermined amount.[5] Stanford University Medical Center (SUMC), the headquarters of Stanford Health, is located in Palo Alto. Branches of Stanford Health are located in four of the five cities where the local initiatives were filed.[6][7]

Proposition 8 was not the first conflict between the SEIU-UHW West and dialysis firms, nor were the local ballot initiatives the first conflict between the labor union and Stanford Health. The SEIU-UHW West said workers at dialysis clinics have been attempting to unionize since 2016, but that their employers were retaliating against pro-union employees. Kathy Fairbanks, a spokesperson for the campaign opposed to Proposition 8, said the union is using the ballot initiative as leverage.[8] Wherley, a spokesperson for the SEIU-UHW West, contended that dialysis workers "want these [initiative] reforms regardless of what happens with their union efforts."[9] The SEIU-UHW West had more than 1,800 members who are employees of SUMC.[10] Other Stanford Health facilities were not unionized workplaces in 2018/ Wherley said the local initiatives are not bargaining chips, saying that the union signed a three-year contract with SUMC in December 2017 and that there was no active organizing at other Stanford Health facilities.[11]

Dave Regan, president of the SEIU-UHW West, discussed the union's initiatives, saying, "Ballot initiatives are an important part of the public policy debate. We believe the system would be better if it produced outcomes that reflect what the majority of Californians and the majority of Americans want, which is less expensive health care that is accessible and high quality."[12] Patients and Caregivers to Protect Dialysis Patients, the committee leading the campaign in opposition to California Proposition 8, said the ballot initiative would result in clinic closures and reduced patient access.[13] Stanford University, which is affiliated with Stanford Health, opposed Livermore Measure U and Palo Alto Measure F, saying the ballot initiatives would lead to the cutback and possible closure of healthcare services and programs.[14]

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a successful initiative petition campaign led by Service Employees International Union (SEIU) United Healthcare Workers West.[1]

Related measures

Statewide measures

Local measures

See also

External links

Footnotes

  1. 1.0 1.1 Palo Alto Online, "Judge allows health-care initiative to proceed," August 3, 2018
  2. Santa Clara County, "List of Local Measures," accessed August 27, 2018
  3. Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  4. Kaiser Health News, "Patient Advocacy Or Political Ploy? Union, Industry Square Off Over Dialysis Initiative," October 5, 2018
  5. East Bay Times, “Livermore sued over city measure for healthcare costs; asks court to rule on legality,” August 10, 2018
  6. The Mercury News, "Ballot initiatives in 5 Bay Area cities aim to lower costs at Stanford Health Care facilities," December 19, 2017
  7. Palo Alto Business Journal, "Palo Alto ballot measure targeting Stanford hospital's health care costs moves forward," May 23, 2018
  8. CAL Matters, "In California, a fight over clinics for kidney patients," May 30, 2018
  9. Los Angeles Times, "While dialysis clinic battle brews at state Capitol, healthcare workers look to the ballot," August 9, 2017
  10. Becker's Hospital Review, "Healthcare workers buy $882k radio ad to highlight high infection rates at Stanford University Medical Center," March 20, 2018
  11. Palo Alto Online, "Opponents gear up for battle over health care," September 14, 2018
  12. Politico, "California union leverages ballot initiatives for health care on its own terms," February 5, 2018
  13. Patients and Caregivers to Protect Dialysis Patients, "Get the Facts," accessed May 30, 2018
  14. Stanford University, "Stanford University statement on Measure F in Palo Alto," September 28, 2018