Which is worse: the County Medical system administration that ignores the County Supervisors’ budgetary policy or a Board of Supervisors that fails to enforce its fiscal policy?
The Ventura County Medical System (VCMS) seems uninterested in its long-term sustainability. Repeatedly, the management has disregarded the Board of Supervisors’ policy to focus on reducing operating deficits. Despite the Board’s unanimous vote in 2019 directing VCMS management to “focus on the annual operating deficit as the priority,” the deficits have increased by 22%. And it forces the taxpayers to pay for the escalating deficits.
The Environment For California Hospitals Is Dire
VCMS is a fully integrated public healthcare system consisting of two hospitals, a mental health facility and clinics. It is grappling with a challenging financial environment. A report from KaufmanHall on the fiscal health of hospitals in the state revealed that 20% of the hospitals are insolvent.
Hospitals across California are trimming expenses and cutting staff to become more operationally efficient. Yet, VCMS is moving in the opposite direction.
In the 2023-24 budget, VCMS management proposed a 13% increase in operating costs, while operating revenue will increase only 11% over the previous year’s budget.
A Budgetary Policy Exists
Supervisor Steve Bennett established a budgetary policy for VCMS in July 2019, which the entire Board of Supervisors approved unanimously (see Figure 1 below). The policy emphasized addressing the operating deficit as the priority for the VCMS administrators.
Yet, the VCMS administrators ignore this policy while budgeting growing operating deficits and asking for more taxpayer money every year, including the recently approved fiscal year 2023-24 budget.
The Ventura County Taxpayers Association met with each supervisor and the County CEO to discuss the VCMS budget deficit before the Board of Supervisors approved the VCMS budget.
The Association presented historical information of VCMS’s operating inefficiencies using figures from the county’s Audited Consolidated Financial Reports (ACFR).
The data revealed that the annual operating losses (excluding pension adjustments noted in the ACFR) increased from $33.8 million in June 2018 to $41.1 million in June 2022. These results starkly contrasted the Board’s original vision in 2019.
2023-24 VCMS Budget Presentation
VCMS administrators presented their 2023-24 budget to the Board of Supervisors on May 23, 2023. The proposed budget included a $41.2 million operating deficit. The Board approved the budget as presented, despite Ventura County Taxpayer Association objections.
Where Does The Fault Lie?
The fault seems to lie with both the VCMS managers and the Board of Supervisors. VCMS managers have yet to focus on reducing operating deficits. Likewise, the Board of Supervisors has not exercised adequate oversight and has allowed VCMS managers to disregard the 2019 budgetary policy. Thus, it falls on the Ventura County taxpayers to bear the burden of these escalating losses.
The previous and current years’ deficits demand immediate attention and action by the Board of Supervisors to ensure fiscal accountability to Ventura County
About the Ventura County Taxpayers Association (VCTA)
Formed in 1954, The Ventura County Taxpayers Association is a 501(c)4 nonprofit organization dedicated to a non-partisan, fact-finding mission, emphasizing issues that affect Ventura County. We inform taxpayers, promote the wise use of public funds, oppose waste, advise public officials regarding issues of concern to taxpayers and recommend positions that will best serve the taxpayers’ interests. Our number one goal is to promote the wise use of public money and to oppose waste.
