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DHCS Issues Fee-For-Service Cycle 2 Supplemental Payment for 2017-19 Hospital Fee Program

For CFOs

Yesterday, the Department of Health Care Services (DHCS) issued the second supplemental fee-for-service (FFS) payment related to the 2017-19 Hospital Fee Program, accounting for the approximate 20% shortfall that occurred with the FFS cycle 2 payment in March 2018.

DHCS estimates the May 20 supplemental payments will total approximately $193 million, representing 100% of the modeled amount.

DHCS historically has issued FFS supplemental payments based on the accumulation of multiple FFS cycles. To expedite payments to hospitals, DHCS has agreed to begin issuing FFS supplemental payments on a quarterly basis for cycles where the initial supplemental payment did not account for 100% of the modeled amount. Included below are the estimated payment dates for the remaining FFS supplemental payments.

Estimated EFT Date Program Cycle Type
5/20/2019 HQAF V Cycle 2 FFS Reconciliation Payment
9/23/2019 HQAF V Cycle 3 FFS Reconciliation Payment
12/16/2019 HQAF V Cycle 4 FFS Reconciliation Payment
3/16/2020 HQAF V Cycle 5 FFS Reconciliation Payment
5/18/2020 HQAF V Cycle 6 FFS Reconciliation Payment