CHA News

CMS Approves 2023 District Hospital Directed Payment Preprint

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On June 13, the Centers for Medicare & Medicaid Services (CMS) approved the Department of Health Care Services’ District Hospital Directed Payment (DHDP) program for the Jan. 1-Dec. 31, 2023, managed care rate year.  

The DHDP program provides supplemental payments in the form of uniform dollar increases for inpatient, outpatient (including emergency department), and nursing facility contracted services provided by district hospitals (also known as non-designated public hospitals) to Medi-Cal managed care beneficiaries. While the letter approves the overall DHDP structure, it does not constitute approval of the Medicaid managed care plan contracts or rate certifications for the 2023 rating period.