A California lawmaker is speaking out about what she says are "unintended consequences" for hospitals related to a new law that will gradually raise healthcare workers' hourly minimum wage to $25.
Rep. Diane Dixon, a member of the California State Assembly, penned an opinion piece in the Orange County Register Dec. 2, commending the law's goal while also noting her concerns.
"The goal of ensuring fair compensation for those working tirelessly in the public and private healthcare sector is commendable," Ms. Dixon wrote. "However, it's essential to consider the potential longer-term negative effects this new law may have on public and private employers in the healthcare industry."
Her opinion piece specifically points to what she sees as three potential negative outcomes: cost burden, limited flexibility and effect on public healthcare agencies.
"Wage increases, mandated by state law, place a considerable financial burden on healthcare employers. Most of these businesses already operate on slim profit margins due to the high costs of healthcare delivery," Ms. Dixon wrote. "This law will affect an estimated 469,000 private healthcare workers, which means that managers and their supervisors will also demand pay increases as well. Hospital workers may face layoffs if hospitals seek out-of-state solutions to reduce costs."
She also said the wage hikes mandated in the law do not "account for the variability and complexity of the healthcare industry" and that mandating the...
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