RELEASE: Health Care Expert Concludes Measure F Will Force Pay Cuts And Layoffs At Stanford Health Care And Palo Alto Medical Foundation And Drive Small Medical Practices Out Of Palo Alto

FOR IMMEDIATE RELEASE | Wednesday, September 5, 2018                                                     CONTACT: Duane Dauner, (916) 812-7547

Palo Alto, CA – The Protect Palo Alto/No on Measure F Coalition today shared findings from independent health care expert Stephen Clark that the measure, which proponents claim will address hospital costs, instead will cut access to medical care by driving small medical practices out of the city and forcing layoffs and wage cuts at Stanford Health Care and Palo Alto Medical Foundation.

“Stephen Clark, who has more than 35 years of experience in health care finance, reimbursement, cost analysis, strategic planning and policy, has concluded that Measure F will do irreparable damage to Palo Alto,” No on Measure F Campaign Director C. Duane Dauner said. “Palo Alto voters are thoughtful and when they study the initiative, we are confident they will join our coalition, stand up for the community and reject Measure F.”

Following are Mr. Clark’s statements:

Measure F threatens Palo Alto’s health care system

“It is likely that the combination of the initiative’s direct financial burden, as well as the indirect costs of the accounting and reporting burden, may drive some providers from the area to either bordering cities or areas further from the community. This will not only impact the community in terms of having to seek health care in other areas but could negatively impact the community’s tax base, employment level and related wages.”

Measure F is designed specifically to harm Stanford Health Care and Palo Alto Medical Foundation

“The most significant impact will be incurred directly by Stanford Health Care due to its size and the breadth and level of services provided. The next largest group that could be impacted by the ballot measure is the medical clinics operated by the Palo Alto Medical Foundation (PAMF).”

Measure F consequences: wage cuts, reduced community benefit contributions and layoffs

“It is likely that most of the significant cost reductions will occur in the areas of capital expenditures, employee compensation and community benefit contributions. It is likely that cuts in employee compensation would be accomplished with a combination of pay reductions and layoffs.”

“Mr. Clark’s impartial review clearly demonstrates Measure F’s harmful consequences, which demonstrate why physicians, hospitals, other health care providers and consumers are urging voters to defeat the initiative on November 6. We need to increase access to care, not destroy Palo Alto’s medical community. Voters can protect Palo Alto by voting no on Measure F,” Dauner concluded.

For more information about Measure F, please visit http://www.protectpaloalto.org.

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