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DHCS Issues Letters to Recover Prior Year Overpayments for PHSF Program

What’s happening: The Department of Health Care Services (DHCS) issued demand letters last week to nearly 125 private hospitals seeking to recover overspent funds distributed through the Private Hospital Supplemental Fund (PHSF) program.  

What else to know: DHCS wants to recover overspent funds from 2013-14 and 2020-21. The overpayments are due to DHCS by April 1.  

DHCS Receives Federal Approval of the 2023-24 Hospital Fee Program

What’s happening: On Dec. 15, the Department of Health Care Services (DHCS) received federal approval of the 2023-24 Hospital Fee Program, originally submitted in March 2023.  

What else to know: The program runs from Jan. 1, 2023, to Dec. 31, 2024, and will provide California’s hospitals with an annual net benefit of approximately $5.3 billion per year on an accrual basis over the 24-month period.    

DHCS Will Host Dec. 19 Webinar on Medi-Cal Professional Targeted Rate Increases

What’s happening: The Department of Health Care Services (DHCS) is hosting an open webinar on Dec. 19 at 3 p.m. (PT) to answer questions about the implementation of targeted rate increases for Medi-Cal professional services, effective Jan. 1, 2024.    

What else to know: Under the 2023 Budget Act, DHCS received authorization (pending federal approval) to increase rates for certain primary care, obstetric, and non-specialty mental health procedures to 87.5% of Medicare rates.   

DHCS Releases Updated Managed Care Utilization Data to Determine Hospital Directed Payments

What’s happening: On Dec. 8, the Department of Health Care Services (DHCS) released the latest round of Medi-Cal managed care utilization data to hospitals and health plans, which is used to determine the amount of funding each hospital will receive in the Private Hospital Directed Payment Program.   

What else to know: Hospitals should download their data from the DHCS secure site as soon as possible as uploaded files will be deleted within 45 days.   

DHCS Changes How Hospitals Access Their Payment Data Files

What’s happening: On Dec. 15, the Department of Health Care Services (DHCS) is scheduled to discontinue access to their current secure data portal. Hospitals download data from this portal to use for various Medi-Cal payment programs.   

What else to know: Hospitals that have not done so already are required to sign up for a new, more secure data portal that includes multi-factor authentication.