VACAVILLE -- The Vacaville Planned Parenthood, along with clinics in Pittsburg and Richmond, will be vacant after Friday. The beginning of the fiscal year marks an end to Planned Parenthood’s hopes that their operations can continue with their current financial deficit.
“It was very hard thing got do, they had been working to expand health care,” said Kathy Kneer, outgoing CEO of Planned Parenthood Affiliates of California.
Kneer says the decision to close is a mixture of old and new problems.
“Two factors created a perfect storm for our health care centers,” said Kneer.
The first is an ongoing Medicaid/Medi-Cal reimbursement deficit.
According to Kneer, for years the federal government’s reimbursements to Planned Parenthood for treating Medi-Cal patients has been less than what it actually costs Planned Parenthood to treat those patients.
Prop 56 -- the tobacco tax increase -- was supposed to help healthcare providers fill that deficit. However, despite the tax passing and tobacco prices skyrocketing, the state budget did not pass along the promised reimbursement funds to providers.
The second factor is the Republican proposals to defund Planned Parenthood. That threat isn’t new, but both the House and Senate’s proposed Obamacare alternatives would remove PlannedParenthood funding for a year, they also propose large cuts to Medicaid.
So while other community clinics may be able to absorb patients from closed Planned Parenthood centers, they too face cuts.