California has a big dilemma. The State is a defendant in a lawsuit that is before the United States Supreme Court. The State wants to cut Medi-Cal payments by 10%. Healthcare providers sued the State to prevent the cuts from taking place. If the State wins, the cuts will force more providers to stop accepting Medi-Cal patients. This will put a strain on government run providers such as the LA County Department of Public Health. If the State is rebuffed, then California will be forced into a deficit. This may lead to the first state in the union to file for bankrupcy. This is a lose lose situation.