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Governor’s May Budget Revise Proposes Significant Medi-Cal Coverage Changes, $50 Million for Distressed Hospitals

What’s happening: Today, Gov. Newsom released his May Revision budget proposal, which includes changes to Medi-Cal coverage along with spending cuts and revenue increases to address the long-term structural budget deficit. The proposal also includes $50 million to provide short-term support for distressed hospitals and commits to working with the Legislature on the issue.

Applications for Distressed Hospital Small Grant Program Due May 18

What’s happening: Following the governor’s signing of Assembly Bill 108 (Gabriel, D-Encino) last week, the Department of Health Care Access and Information has established the Distressed Hospital Small Grant Program, which will provide $25 million to assist hospitals in immediate and severe financial distress. HCAI has released the grant application, which is due May 18 by 5 p.m. (PT). 

Hospital Fee Program 9 Payment Policies Likely to Be Finalized in Early May

What’s happening: The California Department of Health Care Services (DHCS) has indicated that payment policies are likely to be finalized in early May for the revised Hospital Fee Program tax model for calendar year 2025 (Program 9), which was submitted to the Centers for Medicare & Medicaid Services (CMS) last month. Soon after finalization, a model will be...

CHA’s Two Sponsored Bills Make It Out of Assembly Health Committee

What’s happening: Despite the concerns of Chair Mia Bonta, both CHA-sponsored bills —Assembly Bill (AB) 1923 (Soria, D-Merced) and AB 2353 (Pacheco, D-Downey) — moved out of the Assembly Health Committee on Tuesday. AB 1923 would expand the Distressed Hospital Loan Program (DHLP) and AB 2353 would allow for additional cost analysis of proposed legislation and regulations...