CHA News

CDPH Releases Proposed Hospital License Fees

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The California Department of Public Health (CDPH) has released its Annual Fee Report for Fiscal Year 2020-21. It proposes an increase for hospitals from $661 to $846 per bed statewide and an increase from $861 to $1,002 per bed in Los Angeles County.

The proposed fees represent a 28% increase statewide and a 35% increase in Los Angeles County. These fee increases are proposed to go into effect July 1, 2020.

These increases apply to hospitals licensed as acute psychiatric hospitals and general acute care hospitals. In the Governor’s Budget Summary for 2020-2021, the stated reasons for increases to CDPH’s budget include a need to meet mandated state licensing and certification workload, improve care, and better protect the safety of patients. The summary also notes the resources will allow CDPH to complete licensure and re-licensure workload, and the timely investigation of complaints to mitigate any future backlogs. The budget proposals will also allow the Licensing and Certification Program to expand its capacity to better respond to stakeholders and future efforts to streamline and standardize practices.

The report also notes that in 2018 the state enacted a Los Angeles County supplemental fee to account for the higher costs associated with CDPH’s contract with Los Angeles County for the survey work it conducts on CDPH’s behalf.

CDPH is currently in the first year of a three-year contract with Los Angeles County. The Governor’s Budget Summary references that the administration’s proposal reflects the continued phase-in of resources for the department’s contract with Los Angeles County.