CURIOUS ABOUT ACHD MEMBER BENEFITS?

UPCOMING WEBINAR:

NEW LAWS IN 2026

WHAT'S NEW IN DECEMBER

CEO MESSAGE

As the calendar year ends, our team wants to take some time to recap a few of the highlights of 2025. First, from a legislative perspective, the Association is very pleased that the Governor signed ACHD sponsored AB 533 (Flora), which re-authorizes any healthcare district to use the design-build process when contracting for the construction of a hospital or health facility building, effective January 1, 2026. ACHD was also instrumental in blocking or mitigating the impact of several bills (through requested amendments) that would have posed challenges for healthcare districts. While this was, by several measures, a successful legislative year, we recognize that significant challenges remain on the horizon.

2025 also marked a year of expanded outreach and increased visibility for ACHD in influential forums and exclusive spaces as never before. This enabled the Association to amplify the critical importance of healthcare districts to new, politically important audiences. This work is a result of the Board's approval of the ACHD 2025-28 Strategic Plan, resulting in a three-year roadmap which includes strategies for increasing ACHD's visibility. As part of the budgeting process, the Board approved a new line item in the 2025-26 budget dedicated specifically to advocacy outreach. This modest investment is laser-focused on opportunities that elevate ACHD’s brand recognition among lawmakers, similar associations, stakeholders, potential sponsors and other strategic partners.

Thanks to our Vice President of Advocacy and Strategy, Sarah Bridge, we pursued several high-level opportunities aligned with this goal. These opportunities not only allowed ACHD to strengthen relationships with policymakers, their staff, and other advocacy partners, but also helped these constituencies better understand ACHD and our members’ challenges. For more on this exciting development please see Sarah Bridge's update below.

As 2026 and a new legislative cycle approaches, the ACHD Advocacy Committee and the Board are reviewing and approving ACHD’s advocacy priorities for 2026. We have ambitious goals for the year ahead and will keep members updated along the way. If you haven’t yet, be sure to register for ACHD's New Laws in 2026 Webinar. Sarah and Mustafa Hessabi, Chief Counsel for CDSA will provide an update on new bills signed into law that become effective January 1, 2026. Sarah will also provide insights into ballot initiative activity and the current political landscape in Sacramento. 

On behalf of our team and the Board of Directors, ACHD would like to wish all of California’s healthcare districts and our strategic partners a very happy holiday season and we wish all the best for you and yours in the new year.  

With gratitude,

The Legislature returns on January 5, 2026 for the second year of the two-year session. ACHD looks forward to continuing work on several initiatives. In addition to our regular work, ACHD has assembled an H.R. 1, or “One Big Beautiful Bill”, response ad hoc group. This group’s primary focus is identifying areas of change that are of particular interest to California’s healthcare districts and how we can support other efforts related to federal changes.

As Cathy mentioned, in 2025 ACHD took advantage of opportunities to expand the Association’s visibility in the California political landscape. Most recently, ACHD leaders recently participated in both the Independent Voter Project (IVP) meetings, as well as events with the California Legislative Women’s Caucus, using these forums to elevate the profile of healthcare districts in statewide policy conversations and strengthen bipartisan relationships. Through IVP, ACHD briefed policymakers and thought leaders on district priorities such as Medi‑Cal reimbursement stability, capital and workforce needs, and the importance of preserving community‑based governance. While engaging in the Women’s Caucus event, ACHD highlighted how districts support women’s health, behavioral health, maternal care, and caregiving, positioning districts as key partners in advancing the caucus’ health agenda.

Earlier this fall, ACHD also partnered with the California Special Districts Association (CSDA) to bring legislative staff to special districts in California. This year’s visit included Del Puerto Healthcare District.

In 2026, we are excited to continue to expand our political presence and voice, elevating healthcare districts as critical providers throughout California. 

When budgets tighten, facility upgrades often fall behind immediate needs. But delaying improvements to HVAC, lighting, central plants, onsite power, and controls can increase long-term costs and impact patient care. To avoid this, many California healthcare districts are turning to alternative funding models that require no bonds or upfront capital.

Energy Savings Performance Contracting (ESPC) allows districts to complete infrastructure upgrades and pay for them through guaranteed energy and operational savings. Energy-as-a-Service (EaaS) similarly converts major capital projects into predictable operating expenses through long-term service agreements. Both approaches support modernization without adding debt or burdening taxpayers.

By reinvesting existing utility budgets into performance-based improvements, districts can enhance comfort, reliability, and efficiency while safeguarding fiscal responsibility. These models help facility leaders move forward now—rather than waiting for future bond measures—reducing the risk of costly system failures and ensuring healthier, more resilient buildings.

Check out Veregy’s work in this area and take a deeper dive here.