Venice Family Clinic

LA County CEO Davenport Names DHS Hospital Closure as Possibility — $1.85B Deficit, $750M/yr Fed Loss by 2028

LA County CEO Fesia Davenport publicly raised closing one of the four Department of Health Services (DHS) hospitals — LA General, Harbor-UCLA, Olive View-UCLA, or Rancho Los Amigos — as a potential cost-reduction option in the FY2026-27 budget cycle (LAist financial-future series). DHS is losing $750M/yr in federal funding by 2028, projecting a $1.85B deficit. 70% of DHS budget is federal; only 6% local. Closure of any DHS hospital would push tens of thousands of safety-net patients onto FQHCs as the residual safety-net infrastructure — major workforce + capacity shock for LA FQHCs. Tied directly to Measure ER's polling failure (47/45 split, below 2/3 threshold). Strategic implication for LA-area FQHCs (AltaMed, St. John's, Eisner, JWCH, Northeast Valley, Watts Healthcare, Venice Family Clinic): (1) capacity scenario planning for DHS-displaced patient absorption — model 10/25/50% surge scenarios in nearby ZIP codes; (2) primary-care + ED-substitution staffing plans with a 12-month lead time; (3) coalition coordination with LA County Health Agency on transition planning if any closure proceeds; (4) advocacy alignment with Measure ER campaign through November 2026 ballot. Pairs with the LA County FY26-27 $48.8B budget cycle and Section 504 extension as the May 2026 LA cluster.