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MLK Hospital in South L.A. fights for a larger share of Measure B funds

Martin Luther King Jr. Community Hospital warns that losing up to $100 million in Medicaid changes could force its closure and is urging the county to allocate more Measure B tax revenue to the facility.

Martin Luther King Jr. Community Hospital, which serves hundreds of thousands of South Los Angeles residents, projects a loss of $80-$100 million in 2026 after federal Medicaid reforms take effect. The hospital, operating with limited space and even treating patients in outdoor tents, is seeking a larger portion of the Measure B property-tax revenues that currently flow mainly to private trauma centers such as Cedars-Sinai Medical Center.

Cedars-Sinai, which reported over $1 billion in net income, argues that changing the allocation formula would undermine the trauma system the tax was designed to support. County health officials and local leaders, including Supervisor Holly Mitchell, plan to commission a review of the funding distribution. If the hospital were forced to close, officials warn that the nearest emergency department is several miles away, creating a serious access gap for a largely Medicaid-dependent population.

Why it matters

The hospital’s possible closure would leave a densely populated, low-income area without nearby emergency care.

In this story

Medicaid reformsMeasure B fundingemergency department overcrowdinghospital closure risktrauma center financingSouth Los Angeles healthcarecounty tax revenue