California Hospital Association Sues State Office Over Spending Caps

The California Hospital Association (CHA) has filed a lawsuit against the Office of Health Care Affordability (OHCA) challenging recently adopted caps on hospital spending growth, reports Newsweek. CHA filed the lawsuit based on the argument that the spending-growth caps will undermine access to care and strain hospital finances. The spending-growth cap is set at 3.5 % beginning in 2025, then declining to 3 % by 2029. However, proponents say the policy is a key tool to help make health care more affordable by aligning spending growth with income growth.