In September 2018, the Department of Health Care Services (DHCS) sent hospitals invoices covering the last four fee-for-service (FFS) cycles of the 2017-19 Hospital Fee Program. The third invoice, Cycle 9 FFS, covers Jan. 1 – March 31, 2019, and is due April 3. Hospitals will receive the corresponding FFS payment on April 22.
The invoices included new payment instructions that allow hospitals to use DHCS’ electronic funds transfer website. It is critical that all hospitals pay their invoices in full and on time.
Any hospital that does not pay its invoice will be placed on withhold until DHCS collects the entire balance due. Withholds will first be applied to future payments due to the hospital from the Hospital Fee Program, and weekly Medi-Cal claims payments will be withheld if a delinquent balance remains. All withheld funds are held in a reserve account that will eventually be used to draw down the remaining federal funds available and will support the Hospital Fee Program. It is still expected that hospitals will receive at least 95 percent of the modeled FFS payments by the end of the program.