CHA News

CDPH Proposes Increase in Hospital Licensing Fees

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The California Department of Public Health (CDPH) proposes to increase hospital licensing fees by 20 percent for state fiscal year 2019-20, raising fees from $550 to $661 per bed.

For hospitals in Los Angeles County, the department also proposes to raise its supplemental fee by 23 percent, from $55 to $156 per bed. According to CDPH, licensing fees are intended to cover the cost of developing, administering and enforcing state licensure standards and other compliance activities.

In its calculation of the fees for each health care facility type, CDPH uses a methodology that projects the entire state workload percentages associated with each health care facility type and calculates the revenue required. The same method is used to develop the supplemental fee for facilities located in Los Angeles County. The proposed fee increase reflects $3.4 million in augmented staffing and information technology support as a result of CHA-sponsored Assembly Bill 2798 (Chapter 922, Statutes of 2018), which established time frames for CDPH to process hospital applications.