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Hospital Closures vs. Billionaire Wallets: California's Healthcare War Heats Up

Andrew JohnsonAuthor
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Reading time3 min
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California’s November ballot is shaping up to be a heavyweight fight over healthcare funding, and it’s pitting an unlikely enemy against an unlikely ally. On one side, Dave Regan, President of SEIU-United Healthcare Workers West, is pushing a one-time billionaire asset tax that could bring in roughly $100 billion to shore up the state’s crumbling health infrastructure. On the other, the California Medical Association—traditionally a progressive voice on healthcare issues—is joining forces with Governor Gavin Newsom, business groups, and anti-tax nonprofits to block it.

The stakes? SEIU-UHW says 3.5 million Californians are about to lose health coverage, and hospitals and clinics across the state are closing. It’s a crisis they argue demands immediate action, not federal pipe dreams. Regan doesn’t mince words when discussing Newsom’s preference for a nationwide billionaire tax, calling it unrealistic given Congress hasn’t raised the minimum wage in 17 years. The proposed measure would target roughly 250 billionaires who were California residents as of January 1, 2023—a manageable number, Regan argues, making administration straightforward.

But Dustin Corcoran, CEO of the California Medical Association, sees it differently. While CMA has supported previous revenue measures (tobacco tax, Prop 55, the MCO tax), Corcoran contends this one-time approach will ultimately cost the state more than it generates. He’s critical of what he calls the lack of collaboration—SEIU-UHW put the measure on the ballot, he says, without consulting other healthcare stakeholders. It’s a charge Regan disputes, though he confirms discussions with CMA did occur.

The real tension here reveals something deeper about California’s healthcare crisis: even organizations fighting for the same patients can’t agree on solutions. Corcoran acknowledges the problem (hospital closures, federal pressure from H.R. 1) but rejects the remedy, arguing the state needs sustainable, ongoing revenue streams, not emergency measures that could backfire. Regan fires back that billionaires won’t flee California—pointing to Massachusetts as proof that wealth taxes don’t trigger mass exodus.

The California Medical Association’s position is particularly striking because it places them alongside business interests typically opposed to progressive taxation. That’s not a comfortable spot, and Corcoran seems aware of it. His framing—”the sentiment’s right, the details are horrible”—suggests CMA isn’t anti-tax so much as anti-*this-tax*. He even shared a story about explaining the measure’s problems to his 15-year-old, who immediately grasped the flaw.

What’s missing from this fight is exactly what Corcoran said never happened: a unified healthcare strategy. Instead, California voters face a binary choice: Regan’s emergency measure or…what? The state already faces federal gutting of health insurance coverage. Governor Newsom’s nationwide billionaire tax remains firmly in wish-list territory. Real patients in real hospitals don’t have the luxury of waiting for consensus. By November, voters will have to decide whether SEIU-UHW’s imperfect solution beats the alternative of doing nothing.

About the Author

Andrew Johnson

Andrew Johnson is a contributor to LocalBeat, covering local news and community stories.

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