CHA, Stakeholders Urge Quick Movement on Payment Methodology

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What’s happening: At the inaugural Proposition (Prop) 35 “Protect Access to Health Care Act” Stakeholder Advisory Committee meeting, held April 14, CHA and other stakeholders urged the Department of Health Care Services (DHCS) to move forward quickly with a payment methodology that meets two primary goals.  

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EMSA Withdraws AB 40 Emergency Regulations

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What’s happening: On April 14, the Emergency Medical Services Authority (EMSA) released a withdrawal notice for its proposed Assembly Bill (AB) 40 (2023) emergency regulations.  

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Rep. Matsui Raises Concerns About Tariffs’ Effects on Medical Supply Chains

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What’s happening: Rep. Doris Matsui (D-CA-7) lead a letter to U.S. Trade Representative Ambassador Jamieson Greer and U.S. Department of Commerce Secretary Howard Lutnick on concerns about the effect tariffs would have on supply chains for medical supplies, generic drugs, and medical devices.  

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CMS Issues Post-Acute Care Payment Proposed Rules

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What’s happening: On April 11, the Centers for Medicare & Medicaid Services (CMS) issued its proposed payment policies for inpatient rehabilitation facilities (IRFs), skilled-nursing facilities (SNFs), and long-term care hospitals (LTCHs) for federal fiscal year (FFY) 2026.   

What else to know: Comments on the proposed rules are due to CMS by June 10.  

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Expanded Hospital Supplier Diversity Reports Due July 1

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What’s happening: The first round of expanded Hospital Supplier Diversity Reports required under Assembly Bill (AB) 1392 (2023) are due to the Department of Health Care Access and Information (HCAI) on July 1.  

What else to know: In 2024, the Office of Administrative Law approved HCAI’s regulations to implement AB 1392. This year, the new reporting requirements are fully in effect — and HCAI has developed a new template to support and inform this updated reporting. 

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DHCS Community Support Updates Take Effect July 1

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What’s happening: The Department of Health Care Services (DHCS) has updated service definitions for four of the 14 community supports that Medi-Cal managed care plans (MCPs) may offer as part of the state’s Medi-Cal reform effort, California Advancing and Innovating Medi-Cal (CalAIM). The four updated service definitions go into effect July 1. 

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CMS Finalizes Medicare Advantage, Part D Rule for 2026

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What’s happening: In its finalized changes to the Medicare Advantage (MA) and Part D prescription drug programs for contract year 2026, the Centers for Medicare & Medicaid Services (CMS) struck most of the Biden-era proposals and declined to finalize additional insurer accountability provisions.  

What else to know: The rule, which did not address several other proposals (detailed below), is effective Jan. 1, 2026.  

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CHA Memo Helps Hospital EDs with Psychiatric Emergencies Under AB 1316

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What’s happening: As of Jan. 1, hospital emergency departments (EDs) have a clear pathway for Medi-Cal reimbursement for behavioral health visits under CHA-sponsored Assembly Bill (AB) 1316 (2024). In a memo to members, CHA provides guidance to hospitals on the new requirements and their obligations for stabilizing or transferring individuals in EDs experiencing a mental health crisis. 

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Emergency Care on Life Support

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A report released earlier this week by the well-respected and nonpartisan RAND Corp. underscores an alarming fact that hospital leaders have been saying for years: The viability of hospital-based emergency care is at risk after facing epidemics, a pandemic, increased patient acuity and complexity, and unsustainable declines in payment. 

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Medicare Fee-for-Service Margins Analysis Includes Q4 2024 Data Release

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What’s happening: Following the Centers for Medicare & Medicaid Services’ (CMS’) fourth quarter (Q4) 2024 data release, CHA DataSuite has issued a hospital-specific analysis of the Medicare fee-for-service (FFS) margins that show its trends from federal fiscal year (FFY) 2014 through FFY 2023.  

What else to know: Approximately 93% of hospitals provided their FFY 2023 cost reports for this CMS data release.  

The analysis shows Medicare margins for the following areas/units: inpatient, outpatient, graduate medical education, psychiatric unit, rehabilitation unit, skilled-nursing unit, and swing beds. The margins are shown graphically for hospitals.  

This analysis excludes COVID-19 public health emergency funding, including both provider relief fund and small business association loan forgiveness amounts since that may not have been used solely for Medicare FFS activity.  

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Email datasuitereports@calhospital.org with any questions.