CEO Message

As Federal Shutdown Looms, CHA Elevates Hospital Priorities

As federal lawmakers scramble to pass a funding measure that would avert a government shutdown when the current spending plan expires Sept. 30, several key issues affecting hospitals are in play. 

As we work to press for resolution on these issues, there’s still time to ask your representative to support policies that protect access to health care. Please reach out as soon as possible to your member of Congress using these resources (click here). 

First, 31 members of California’s congressional delegation weighed in with House Speaker Mike Johnson and Minority Leader Hakeem Jeffries — in a bipartisan effort — asking them to prevent reductions to the Medicaid Disproportionate Share Hospital (DSH) Program. Should the DSH cuts be allowed to go into effect, they would strip an estimated $1 billion annually from California hospitals. 

Second, on Sept. 9, a bipartisan group of U.S. representatives pressed U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. in a letter outlining concerns about the proposed 340B Rebate Model Pilot Program scheduled to begin Jan. 1, 2026. Twenty-nine members of the California congressional delegation signed on. CHA submitted comments on the proposed pilot program as well.    

Also this week, CHA submitted comments on the upcoming Medicare outpatient prospective payment system proposed rule. The letter detailed several concerns with the proposal, including harmful site-neutral payment cuts and onerous price transparency requirements.  

Perhaps top of mind for California’s hospital leaders is Hospital Fee Program 9, which is pending review by the Centers for Medicare & Medicaid Services (CMS). CHA is working on multiple fronts to help secure passage of this critical funding mechanism, including directly with the Trump administration and with the state to ensure prompt responses from CMS. 

Additional federal advocacy efforts through the end of this year include: hospital at home, insurance premium tax credits, and telehealth, as well as legislator education on Medicare cuts resulting from budget sequestration triggered by the One Big Beautiful Bill Act.