DHCS Issues Fee-For-Service Cycle 3 Supplemental Payment for 2017-19 Hospital Fee Program

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On Sept. 23, the Department of Health Care Services (DHCS) will issue the third supplemental fee-for-service (FFS) payment related to the 2017-19 Hospital Fee Program, accounting for the approximate 10% shortfall that occurred with the FFS Cycle #3 payment in April 2018.

DHCS estimates the Sept. 23 supplemental payments will total approximately $80 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.