'Significant' funding worth $14 million annually to Natividad hospital is on the line, partly due to federal shutdown.

The federal government shutdown could have an immediate effect on the County of Monterey’s hospital, Natividad, to the tune of $14 million a year, the Board of Supervisors learned just seven hours before the shutdown commenced at 9:01pm PST, Oct. 1.

Natividad CEO Dr. Chad Harris told the supervisors on Tuesday, Sept. 30 that the shutdown could endanger the extension of Disproportionate Share Hospital funding, a federal and state program that distributes supplementary payments to public hospitals that serve a large number of Medicaid and uninsured patients. The program was set to expire on Oct. 1.

A continuing resolution that would extend DSH funding into the future was passed in the House of Representatives on Sept. 19 but was not voted on in the Senate. The shutdown could prevent the extension, meaning a loss of $8 billion in funding to public hospitals nationally, Harris said.

“That impact, if those funds are not extended, that’s $14 million per year to Natividad. That’s significant,” he said.

Harris said DSH funding did have bipartisan support. He expressed hope that once a budget agreement is reached and the government reopens, the funding will be extended. 

Harris shared the news with the supervisors during an overall report on the impact of President Donald Trump's "One Big Beautiful Bill" on the county and its residents in the coming years. Directors reported that thousands of people will lose Medi-Cal and CalFresh benefits, negatively impacting the health of those residents and putting strain on the system. In addition, the county will lose federal funding.