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Supervisors OK Changes to Get $364 Million in Federal Aid

The Los Angeles County Board of Supervisors formally approved changes to its Medi-Cal contract on Tuesday that will allow the county to receive $364 million in federal funds to restructure its health care system.

Last week, the state California Medical Assistance Commission approved an amendment to its contract with Los Angeles County, which gives the county permission to shift state and federal funds intended for hospital care to outpatient care. Such a shift is expected to save the county millions of dollars.

In September, President Clinton promised to grant the $364 million in aid if supervisors agreed to make the health system less dependent on inpatient hospital care and more reliant on outpatient clinics.

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The county and federal governments are expected to finalize a contract by Nov. 15, with the county receiving the first installment by March 26.

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