Over the weekend, Gov. Gavin Newsom signed yet another bill that delivers an inflationary shot to the economy, raising the minimum wage for health care workers to $25 per hour.

In contrast to the fast food workers minimum wage Newsom signed last month that boosts such wages to $20 an hour effective next year, SB 525 kicks in in June 2024 with increases at varying rates depending on the type, size and funding mix of the health care facility.

The increase comes at a time when hospitals across the state are facing an existential crisis in the face of paltry Medi-Cal and Medicare reimbursement rates. A higher minimum wage for nurses and other support staff will not help Madera Community Hospital reopen or Kaweah Medical Center stay open.

As Craig Castro, president and CEO of Community Health System in Fresno notes in a recent CalMatters commentary, Community Regional Medical Center has the second highest Medi-Cal and Medicaid hospital patient discharges in the state — and sixth in the nation.

“Medi-Cal and Medicare cover only 88% of costs,” Castro wrote. “When 84% of your patients are covered by one or both of these programs, well, you can do the math.”

That’s the kind of math that puts health care on a downward trajectory.