Santa Clara County is facing a financial earthquake that could fundamentally transform local healthcare services. The federal government’s recent budget cuts are set to slash $223 million in Medicaid revenues this fiscal year, with projections suggesting that number could balloon to $506 million by 2026-2027.

The impact is deeply personal for Bay Area residents, particularly the one in four Santa Clara County inhabitants who rely on Medi-Cal, the state’s publicly funded health insurance program. County officials are scrambling to absorb these cuts, considering drastic measures like service restructuring and potential program eliminations.

The most immediate consequences are already visible. Regional Medical Center in East San Jose recently reopened its labor and delivery services, but this came at a steep price – the closure of O’Connor Hospital’s maternity ward. Paul Lorenz, CEO of Santa Clara Valley Healthcare, warns that residents should expect longer wait times and service disruptions.

Board of Supervisors President Otto Lee expressed serious concern about the potential erosion of critical services. “We’ve worked incredibly hard to protect behavioral health, substance abuse treatment, and homeless support programs,” he stated. “These cuts will inevitably impact our progress”.

Supervisor Margaret Abe-Koga argues that the county has already trimmed the “low-hanging fruit” in previous budget cycles. Now, they must dive deeper, finding innovative ways to generate revenue and establish financial buffers.

A potential lifeline emerges in the form of Measure A, a proposed sales tax increase aimed at mitigating these federal funding losses. If passed on November 4th, the measure could generate $83 million for the current fiscal year, potentially reducing the revenue gap.

Supervisor Susan Ellenberg offers a sobering perspective, noting that the county might be forced to cut programs that are actually working and positively impacting communities – a scenario she describes as “a low point in our county government’s history”.

As the community braces for these potential changes, one thing remains clear: the healthcare landscape in Santa Clara County is about to undergo a significant transformation.