Linda Roberts, Administrator, Pixley/Tipton Medical Clinic
Nominated by: CSRHA Staff

The impact of the Great Budget Impasse of August 2007 was felt throughout the state, from hospitals in Humboldt to medical clinics in tiny towns of the San Joaquin Valley. With more than 90% of revenue coming from Medi-Cal and Medicare reimbursements, the clinics of Tipton and Pixley rely heavily on state funds for survival. And Tipton and Pixley residents rely on the clinics.

While Sacramento’s “powers that be” deliberated, negotiated, and debated their way into a 52-day fiscal fiasco, the Tipton and Pixley clinics anxiously awaited the arrival of state disbursements. Aware of the typically tardy state budget, the clinics had enough reserve funds for two weeks. But days went by, then weeks. After nearly a month, emergency funds were depleted, no check had arrived, and the State Legislature took a vacation.

Linda Roberts, administrator and owner of the Tipton and Pixley medical clinics, was determined to keep her clinics open in spite of the budget stalemate. Ms. Roberts first attempted to obtain a loan from a local bank. The bank, however, was less than enthusiastic about the idea: “How can we be sure that the State owes you money?” they asked. With little collateral to offer, Ms. Roberts was left without a loan and without many options.

Instead of shutting clinics’ doors, though, Ms. Roberts chose to cash out her retirement in order to pay her employees. Others in the community had similarly generous ideas, some even offering to refinance their homes to help keep the clinics open. The dire situation, Ms. Roberts’ determination, and the overwhelming support from Tipton and Pixley residents soon caught the media’s attention. The Fresno Bee and the Visalia Times published stories about the budget’s impact on small rural towns such as Tipton and Pixley, and Linda also spoke out during television and radio interviews.

The very public predicament of Tipton and Pixley clinics moved Health Net of California to provide a $50,000 interest-free loan to enable the clinics to continue to operate during the impasse. A generous community member, who remains anonymous, loaned an additional $100,000. “The outpouring of community support was unbelievable,” Ms. Roberts said, “things worked out really well in the end, but I hope no health care provider ever has to go through this again.”

When the state funds resumed, the Tipton and Pixley medical clinics were able to repay their debt to Health Net and the generous community member. And although the two clinics were able to weather the budget storm, Ms. Roberts believes there is much that should be done to prevent such circumstances from recurring. “What people need to understand is that the state does have an emergency fund to deal with [budget] crises, but clinics and hospitals are not eligible to receive funding,” she said, “This is something that has to change.”

Article posted on 1/17/08