Proposition 34 |
Health Care
Provider Spending

Background

This measure would require certain health care organizations that benefit from a federal drug discount program to spend 98% of revenues on direct patient care. The measure applies only to health care providers that: spent over $100,000,000 in any ten-year period on anything other than direct patient care; and operated multifamily housing with over 500 high-severity health and safety violations. It also penalizes noncompliance by revoking health care licenses and tax-exempt status. Permanently authorizes the state to negotiate Medi-Cal drug prices on a statewide basis.