Question
In California, ambulance providers can use a Federal program administer through the DHS (Dept. of Health Care Services) to receive partial reimbursement for Medi-Cal patient ambulance transport. I made a public records request regarding these payments. Today they sent me an email stating they are invoking the right to withhold the financial data related to State Plan Amendment 18-007 under the privilege for trade secrets pursuant to California Government Code section 6254(k) in conjunction with California Evidence Code section 1060. This is public financial accounting, commercial firms are exempt.
Can you advise how to proceed?
Answer
Under California law, “trade secret” is defined as “information … that: (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” Civil Code § 3426.1(d).
I am having a hard time figuring out how amounts paid by the government to a private enterprise rise to the level of a trade secret. The service providers here might argue that what they charge for ambulance transports is a trade secret, and thus what they are reimbursed through this program should also be protected as a trade secret. I cannot imagine that the cost of an ambulance ride is a closely guarded secret, given ambulance providers send out bills for these services to, e.g., insurance carriers or even the patients themselves. I have heard a friend quote the total billed to insurance for an ambulance ride, as gleaned from an approved insurance claim. Thus, these amounts are not closely guarded secrets.
Further, the government here has an obligation to the public to disclose what it pays to private entities. To the extent that the information you are seeking is in the hands of the government, e.g., the amounts paid to the ambulance services is determined and approved by the DHCS, it does not seem that the ambulance services here can even claim that this is their information to protect.
I would write back to the agency letting them know that you do not believe this exemption applies, and again requesting that it turn over the financial data to you. You could mention that if you are forced to enforce your rights under the Public Records Act in court, the agency will be liable for your attorneys’ fees. Gov’t Code 6459.
Bryan Cave Leighton Paisner LLP is general counsel for the First Amendment Coalition and responds to FAC hotline inquiries. In responding to these inquiries, we can give general information regarding open government and speech issues but cannot provide specific legal advice or representation. No attorney-client relationship has been formed by way of this response.
Asked & Answered posts should not be relied on as legal advice, and FAC makes no guarantees about their completeness or accuracy. All posts carry a date of publication that readers should take note of in assessing their usefulness, given that laws and interpretations of them may change over time. Posts predating Jan. 1, 2023, that discuss the California Public Records Act may contain statute numbers no longer in use. Please see this page for a table showing how the California Public Records Act has been renumbered.