Update on CCH Finances and the Work Ahead

Dear Colleagues,

This is an update on Contra Costa Health’s financial position and what it means for our work ahead.

In December we provided an early look at potential impacts from state and federal changes to healthcare funding. Now, with additional information, we have a clearer understanding of the scale of the challenge.

We project an $80 million budget shortfall for Fiscal Year 26-27, which begins July 1. We expect additional pressure in future years.

The shortfall is largely driven by factors outside of our control, including changes to Medi-Cal coverage and reimbursement, as well as sustained cost growth across the healthcare system, especially for labor, medications and care delivery. It is our responsibility to respond to these fiscal pressures while providing essential care and services to the community.

We are taking a careful look across the department to identify ways to reduce costs and capture every dollar of available reimbursement. This work includes reviewing programs and service lines to identify areas operating at a deficit, streamlining workflows and strengthening infrastructure to support and sustain change.

We are also working with county partners to address specific operational challenges that affect how we manage systems. This includes improving access to timely financial and operational data, strengthening coordination across services, and ensuring we have the tools needed to make informed decisions about resources.

Even with this work underway, the scale of the shortfall means we must move with urgency. These changes affect how work is organized, how and what services are delivered, and how resources are allocated.

What does this mean for you?

It means continuing to focus on our core mission – providing high-quality care and services, especially for those who rely on us most. That commitment does not change.

It also means that some of these changes will affect staffing, workflows, and how services are delivered across the department. We are implementing these changes in accordance with County policies and labor agreements, and with a focus on maintaining essential care and service quality.

Finally, it means looking for opportunities, large and small, to operate more efficiently in your day-to-day work, and being open to change as we adapt to a rapidly evolving environment.

CCH has faced challenges before, and we have always met them with professionalism, dedication, and a shared commitment to our community. That will guide us as we move forward together.

Thank you for everything you do.

Sincerely,