Initially the state set aside two billion dollars to pay clinics as a bridge until a budget agreement was reached.
That money has been used up. On Friday, the state will begin sending letters out to some 850 health care clinics around California. The correspondence will detail how much the state owes the clinics.
This comes after lawmakers failed to pass a state budget by the July 1st deadline.
Sean South is a spokesman for the California Primary Care Association which represents the clinics. He says administrators are struggling to offset the loss of those payments.
"They're looking at loan programs, they're looking at layoffs, they're looking at clinic hours, they're looking at potentially even closures depending on how long the budget impasse lasts," South says.
About a fifth of the state's population receives Medi-Cal.