CHA News

CHA Pushes Back on Misleading Information Shared at August OHCA Board Meeting

What’s happening: CHA has submitted a letter to the Office of Health Care Affordability (OHCA), setting the record straight on misleading, incomplete information shared during the OHCA board’s August meeting in Monterey.  

What else to know: CHA’s letter also urges OHCA to renew its commitment to inclusivity and balance in the issues, perspectives, and information it explores in the future.  

At its most recent meeting in August, the OHCA board met in Monterey to discuss regional variation in health care costs and the role of market consolidation as a cost driver. The information presented showcased stark regional differences in health care spending throughout the state and assessments of their causes and consequences, but noticeably lacked context and thorough analysis.  

CHA conducted its own analysis of the factors that drive differences in spending across hospitals and over time, finding:  

  • Cost shifting from government to commercial payers explains the growth in commercial reimbursement over time. 
  • Market concentration is not a primary driver of differences in hospital spending. 
  • Differences in the cost of providing care, especially related to recruiting and retaining a strong workforce, explain overall differences in hospital spending.  

Additionally, CHA argued that it is premature to adopt sector targets, as advocated by some commenters at the August meeting, and doing so would contravene clear statutory intent for OHCA to learn and adapt as it grows in its capacities and takes on new functions. Finally, the letter outlines areas of opportunities to improve affordability going forward, such as improving care transitions, bolstering the health care workforce, and improving access to primary and preventive care.  

The OHCA board next meets on Oct. 14. Contact Ben Johnson, CHA group vice president, financial policy, with any questions.