To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contra Costa Health Fiscal Outlook and Future of Contra Costa Regional Medical Center and Health Centers
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
CONSIDER accepting a report on the Contra Costa Health (CCH) current fiscal outlook, including the updated projected Fiscal Year (FY) 2026-27 budget deficit of $10 million and the cumulative five-year structural deficit of $730 million resulting primarily from federal and state healthcare policy changes.
FISCAL IMPACT:
The FY 2026-27 Board of Supervisors approved CCH budget included an $80 million deficit. Since budget adoption, CCH has identified approximately $70 million in revenue, productivity, and cost-containment initiatives, reducing the projected FY 2026-27 deficit to approximately $10 million. Despite these short-term improvements, CCH projects a cumulative structural deficit of approximately $730 million through FY 2030-31. Contra Costa Regional Medical Center and Health Centers (CCRMC) account for the greatest portion of the projected financial challenge.
The majority of the CCH structural deficit is driven by Federal and State healthcare policy changes that reduce healthcare funding, alter Medi-Cal eligibility and reimbursement, and increase the number of uninsured residents which place significant financial pressure on the County's healthcare delivery system.
BACKGROUND:
The FY 2026-27 Board of Supervisors approved CCH budget included an $80 million deficit. Since adoption of the budget, CCH has identified approximately $70 million in revenue, productivity, and cost-containment initiatives, reducing the projected FY 2026-27 deficit to approximately $10 million.
CCH's updated five-year projection identifies a cumulative structural deficit of approximately $730 million through FY 2030-31. Contra Costa Regional Medical Center and the Health Centers (CCRMC) acco...
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