Clinics File Lawsuit to Block SEIU-UHW 90% Patient Care Ballot Measure

California Hospital Association and a community-clinic employer coalition filed suit (May 4, 2026) seeking to block the SEIU-UHW Clinic Funding Accountability and Transparency Act (Initiative #25-0008) from reaching the November 3, 2026 ballot. The initiative — backed by 1M+ signatures (nearly 2x the required threshold) — would mandate clinics spend 90% of revenue on direct patient care and cap executive compensation.

Plaintiffs argue the measure violates state constitutional provisions and would deprive nonprofit boards of fiduciary discretion. Preliminary injunction hearing window: by approximately June 15, 2026.

This escalates the prior CPCA + Open Door federal lawsuit (April 30) into a multi-front legal strategy. Strategic implication for FQHC executives: the legal track is now the primary path to influencing the measure — separate from the political track (donor messaging, voter education).

Coordinate with CPCA legal-strategy briefings, model 90% scenarios in case the measure survives litigation and qualifies, and brief boards on dual-track exposure: ballot defeat OR mandatory 2027 compliance. Pairs with Innercare NLRB hearing and ongoing Kaiser NUHW negotiations.