City of Livermore’s Impartial Economic Analysis Demonstrates the Harmful Consequences to Residents and Taxpayers if the Flawed Initiative is Enacted

The Protect Livermore Coalition, which represents health care providers and patients located in and serving the people of Livermore, today issued a voter alert to address deceptive and misleading statements contained in official ballot arguments in favor of the so-called Livermore Accountable and Affordable Health Care Initiative (Initiative), sponsored by Service Employees International Union-United Healthcare Workers West (UHW). The assertions contained in the proponents’ argument are contradicted by an impartial analysis conducted by Henry W. Zaretsky, Ph.D. and approved by the City Council on July 20, 2018.

“It is disappointing that an organization claiming to represent health care workers would go to such lengths to mislead voters, particularly through attacks against the health care professionals that provide lifesaving care to Livermore residents,” Protect Livermore Director C. Duane Dauner said. “Voters can trust the Livermore City Council and Dr. Zaretsky’s independent analysis, which demonstrates that the initiative would have great negative consequences for patients, health care providers and taxpayers.”

Following are several of the key findings from the Zaretsky report of the initiative:

Economic Impact on Community

If adopted and implemented as is and withstands legal challenges, (the Initiative) is likely to have major impacts on the community. If adopted and implemented as is, the initial implications are:

  • (Health care) Providers will exit the Livermore market, unless they can re-locate nearby, but outside Livermore.
  • Those that are unable to re-locate are likely to cut costs in a manner that will lessen access and compromise the quality of patient care.
  • New providers may be reluctant to enter the Livermore market.
  • If access is diminished, the consumers most affected, as usual, will be low-income, aged and/or disabled, who will have to travel outside Livermore for care.

Economic Impact to City Government

Additionally, Dr. Zaretsky analyzed the prospective cost to taxpayers if the City of Livermore is forced to regulate local health care providers, something that it currently does not have the expertise or funding to do. He concluded that the City will be forced to bear the cost of developing and enforcing regulations limiting the amounts for medical services that specified hospitals, medical clinics, dentists, and other health care providers in Livermore as follows:

  • Implementation startup costs estimated at $750,000 to $1 million; and,
  • Ongoing annual costs of approximately $1.9 million to administer and enforce the initiative.
  • Offsetting the costs of implementing and administering the program through cutting other City services, increasing City revenues, or a combination of both.

“Dr. Zaretsky’s thorough, impartial fiscal analysis clearly demonstrates the harmful consequences of this ballot measure, and we commend the City of Livermore for its diligence to seek the facts to help voters make an informed decision. This initiative is opposed by physicians, local hospitals, other health care providers and consumers, and we are confident that voters will review the facts and vote NO on November 6th,” Dauner concluded.

PAID FOR BY PROTECT LOCAL HOSPITALS AND HEALTH CARECommittee major funding from:California Association of Hospitals and Health SystemsStanford Health CareKaiser Permanente

Protect LivermoreC. Duane Dauner, 916-812-7547Director