Hospital corridor. (Photo: Shutterstock)
When California Fails Children, Forgotten Families Pay the Price
Newsom’s Medi-Cal expansion — celebrated for its enrollment numbers — has done nothing to fix the reimbursement failures driving pediatric unit closures across the state
By Jenn Pellegrino, June 8, 2026 2:30 pm
A child struggling to breathe in a rural emergency room should never become collateral damage in Sacramento’s political priorities.
Yet that is exactly what is happening across California as pediatric inpatient care quietly collapses under Governor Gavin Newsom’s watch. Community hospitals are shutting down pediatric units, children are being transferred hours away from home, and working-class families are paying the price for failed leadership and distorted priorities.
A recent Defend Forgotten America report and peer-reviewed research published in JAMA Pediatrics found that the United States has lost nearly 30 percent of its pediatric inpatient units and roughly 20 percent of pediatric beds since 2008. California has not only failed to stop the decline – in many regions it has accelerated it. But this crisis did not appear overnight. It is the direct result of policy choices.
Pediatric inpatient care is heavily dependent on Medicaid reimbursement. In California, nearly half of all children rely on Medi-Cal. But reimbursement rates consistently fail to cover the true cost of delivering specialized pediatric care. Hospitals are left absorbing chronic losses while labor costs, staffing shortages, and operational expenses continue rising.
Instead of fixing those structural failures, Governor Newsom expanded Medi-Cal enrollment dramatically without implementing the reimbursement reforms necessary to sustain care delivery. Sacramento celebrated enrollment numbers while ignoring whether children could access care when they needed it most.
That is not healthcare leadership. It is political theater.
The consequences are devastating for forgotten Americans living outside California’s wealthy urban enclaves. Families in rural and working-class communities now face multi-hour ambulance transfers, overcrowded emergency rooms, delayed care, and shrinking access to pediatric specialists. Entire regions are becoming pediatric care deserts.
When a pediatric unit closes in a small community hospital, it does not simply disappear from a spreadsheet. It means frightened parents driving through the night to find a bed for their child. It means emergency departments overwhelmed during respiratory illness seasons. It means healthcare workers burning out while communities lose critical medical infrastructure that may never return.
And while California families struggle, Sacramento continues prioritizing massive spending on politically fashionable projects while core healthcare infrastructure erodes. The state has demonstrated the ability to allocate billions toward high-speed rail and climate initiatives, yet failed to implement even basic pediatric preservation strategies such as stabilization funding, regional access standards, or mandatory impact assessments before closures occur.
The state did not lack resources. It lacked priorities.
Contrast that failure with the growing national focus under President Donald J. Trump and Vice President J.D. Vance on restoring accountability to government and refocusing policy around working Americans instead of bureaucratic expansion for its own sake. The Trump-Vance Administration has consistently emphasized strengthening domestic infrastructure, improving healthcare access in underserved communities, and reducing the economic burdens crushing working families.
That approach matters because forgotten Americans do not care about political slogans or glossy press conferences. They care whether their child can see a doctor close to home. They care whether emergency care exists in their community. They care whether leaders are solving problems instead of manufacturing headlines.
California’s pediatric care collapse is ultimately a test of whether government exists to serve families or political ambitions.
The solutions are not complicated. Our report outlines several immediate reforms California should implement: Pediatric-specific Medi-Cal reimbursement reform, stabilization funding for at-risk hospitals, workforce incentives for pediatric specialists, transparency requirements before unit closures, and a comprehensive statewide pediatric capacity audit.
These are practical, achievable steps rooted in reality rather than ideology. But none of them happen without leadership willing to admit the crisis exists.
Governor Newsom and Sacramento Democrats cannot continue claiming success based solely on enrollment statistics while access to actual care collapses across the state. Expanding government programs means little if hospitals cannot afford to keep pediatric units open. Healthcare is not measured by the number of people placed into a system. It is measured by whether care is available when families need it most. Right now, for too many California families, it is not.
Forgotten Americans deserve leaders who understand that protecting children’s healthcare is not a partisan issue; it is a moral obligation. And if California’s political class refuses to confront this crisis honestly, working families will continue paying the price for their failures.