The California initiative to finally put patients first.
Right now, public dollars are not going to patient care
Federally Qualified Health Centers (FQHCs), also known as community clinics, were created to address the fact that many low-income communities struggle to get access to quality healthcare. That’s why, more than any other healthcare provider, they’re publicly funded. But clinic CEOs are now betraying that mission and misusing our tax dollars, spending millions on executive pay and other non-essentials. Some clinics spend less than 50% of their funding on providing care.
We’re putting Clinic Accountability on the ballot to prioritize patients
With massive cuts to federal funding, it’s time to ensure community clinics are spending our tax dollars where it is needed most: on patient care. Not executive pay and other non-essentials. It’s time for The Clinic Funding Accountability and Transparency Act. Voters in California can ensure that a minimum of 90% of clinic revenues goes to supporting the mission of providing care.
Here are just a few examples of clinics misusing our tax dollars
Fundraisers… that Lose Money
DAP Health spent $8 million on their yearly extravagant fundraiser in 2023 but only raised $7.1 million. That’s a $900,000 loss.
Huge Payouts for Lawsuit Settlements
Multiple community clinics have had to pay out millions of dollars for violating California labor law.
Millions on Random Expenses
Somehow, Eisner Health managed to spend $3.8 million on office expenses. That’s over 5% of their budget.
Unsettling Data Breaches
Omni Family Health spent $0 on IT work in 2023, which led to a monthslong data breach that exposed sensitive patient information.
Over the Top Executive Compensation
Clinic executives are raking in 7 figure salaries. AltaMed CEO Castula De La Rocha was paid $1,949,272 in 2024.
Frequently Asked Questions
This initiative will require Federally Qualified Health Centers (FQHCs), also known as community clinics, to spend a minimum of 90% of their revenues on caregivers, patient care, and furthering their mission of care. That means taxpayer money is going where it truly belongs: to direct care and the caregivers who provide it.
Community clinics were created to help low-income and underserved communities gain access to quality healthcare. But many CEOs of these clinics have betrayed that mission by spending millions on executive pay and other non-essentials. Some clinics spend less than 50% of their funding on providing care. At a time when all healthcare facilities are facing looming cuts to federal funding, we must ensure that clinic spending is going where it is needed most: patient care and the caregivers who provide that care.
If a clinic fails to meet the 90% goal (which means they spent more than 10% of revenues on executive pay or other non-essentials) they will be fined. The money from the fines will go into an escrow account that they can earn back if they meet the 90% threshold in future years. This encourages clinics to do the right thing and makes sure funds that can be used for patient care are not lost.
Some community clinics are already meeting this goal, which shows others can do it too. But too many clinics are wasting money on executive pay and non-essentials: there is an estimated $1.7 billion in the clinics system that is not being spent on the core mission of patient care. This initiative will make sure that healthcare dollars go where they can do the most good. That will improve clinics, not hurt them.
This initiative is brought to you by the frontline healthcare workers of SEIU-UHW and SEIU 721. Every day, we go into work and see firsthand how community clinics are failing patients. That’s why we’re pushing for change.
We will submit signatures in April to put this initiative on the ballot so that voters will have the chance to decide during the general election on November 3, 2026.
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It will take all of us to solve the California healthcare crisis. Together, we can hold clinic executives accountable.
