The Lawsuit Against Community Health System

On August 7th, 2024, Cultiva La Salud (Cultiva) and Fresno Building Healthy Communities (Fresno BHC) sued Community Health System (CHS) for misusing $1 billion in public funds. The case also aims to ensure that non-profit hospital funds are allocated equitably. Our goal is to guarantee that all residents in Fresno County, particularly the most vulnerable populations, have full and equal access to quality healthcare, when they need it, and where they need it. We are dedicated to raising awareness and holding CHS accountable to ensure public funds are used for the public good.

An illustration that has two hospital buildings next to each other. One has paper money surrounding it.

Main Case Points

Misuse of Funds

CHS spent $1 billion desperately needed at Community Regional Medical Center (Fresno CRMC) to expand Clovis Community Medical Center (Clovis CMC). These decisions were made by a developer-driven board without public oversight, prioritizing private interests over the healthcare needs of Fresno’s underserved populations.

Discriminatory Impact

The diversion of funds has disproportionately affected Black, Latino, and immigrant communities, who depend heavily on Fresno CRMC for healthcare. This widens the gap in access to quality medical services and worsens the health of our most vulnerable patients.

Neglect of Fresno CRMC

Despite serving as the Central Valley’s only Level 1 trauma center, Fresno CRMC faces chronic underinvestment. The hospital is forced to operate with outdated equipment and operating rooms, understaffing, and deteriorating facilities that fail to meet earthquake safety standards. Meanwhile, the hospital board has poured $1 billion into expanding Clovis CMC – featuring amenities “inspired by upscale hotels” – to intentionally cater to a wealthier demographic.

Lack of Accountability

The hospital board, with close ties to developers, has allocated public funds behind closed doors, and has exhausted the hospital system’s strategic capital to benefit board members’ personal profit-making projects. The board has failed to provide all Fresno County residents with accessible, quality healthcare, as California law requires.

Health Disparities in Fresno County

The California Healthy Places Index (HPI) reveals striking differences in the health of communities served by Fresno’s two major hospitals. The HPI measures 23 key social factors that affect life expectancy, including education, income, housing, and access to transportation. These factors help identify which areas are healthier and which are struggling. Click here to explore Fresno County Health Department’s interactive 2022 HPI map.

Clovis Community Hospital is surrounded by “More Healthy” census tracts, indicating higher levels of education, income, and access to resources, while Fresno CRMC is surrounded by “Less Healthy” census tracts, characterized by lower income, fewer educational opportunities, and more limited access to healthcare and basic resources.

The differences in health and well-being between these areas aren’t just statistics—they reflect real challenges faced by our most vulnerable residents. The proximity of Fresno CRMC to areas with higher needs emphasizes the importance of proper funding and investment. Without it, the communities that rely on our Downtown safety net hospital will continue to struggle with poor healthcare access and outcomes.

Follow the Money

Icon-$1Billion-Construction

$1 billion

Amount invested in Clovis CMC for capital projects, including new facilities and upgrades.

Icon-$400Million-Hospital

$400 million

Amount invested in Fresno CRMC, despite it being an older, much larger hospital whose patients have greater needs.

Icon-70%-Revenue

70%

Percentage of all net patient revenue for both hospitals generated by Fresno CRMC.

Icon-$1Point1B-NetProviderFeed

$1.1 billion

Net Provider Fee funds – Supplemental Medi-Cal funds generated by Fresno CRMC from July 2017 to December 2024 for treating Medi-Cal patients, accounting for over 85% of the total for the hospital system.

Shouldn't public dollars generated by Fresno patients be spent at the Fresno hospital?

Here's what CHS thinks:

“The money is viewed as a system asset…The money that came from the government was in order to support the patients we care for as a system, and we used it in the best way, as a system, to get the most capacity.”

– CHS Chief Executive Officer Craig Castro (The Fresno Bee, 2022)

This lawsuit is a last resort

For over a year, our legal representatives repeatedly asked that CHS explain to the public how it has spent public dollars–only to be stonewalled. Now, only a lawsuit can compel transparency and accountability.

It’s time to hold Community Health System accountable for their spending decisions. Join us in demanding that CHS ensure public funds are used for the public good.

A senior woman and nurse speaking in the bedroom on a bed.

How you can help

Stay Informed

Check this page for updates and news on the lawsuit.

Share Your Story

Have you been impacted by the financial neglect at Fresno CRMC? Click here to share your story online or share on social media using the hashtag #Care4Fresno.

Spread the Word

Help us raise awareness by sharing our message on social media and within your community using #Care4Fresno. Follow and share posts from @Care4Fresno on our Instagram and Facebook accounts.