CHA News

DHCS Issues Hospital Fee Program Invoices

For CEOs, CFOs

This post has been archived and contains information that may be out of date.

On Jan. 26, the Department of Health Care Services (DHCS) issued invoices to hospitals associated with the managed care directed payment phase 2 cycle (“MC1 DP B”). These fees will support the managed care directed payments for the time period of Jan. 1-June 30, 2020.

On the CHA estimated schedules released at the start of the Hospital Fee Program 6 (2019-21), this cycle is noted as “MC Directed 2.” Due to the enhanced federal matching rate on Medicaid payments authorized by Congress to continue throughout the public health emergency, the invoiced fees are coming in approximately 10% lower than modeled. This is not a mistake by DHCS.   

What’s next?  

  • Hospitals’ fees are due to DHCS on Feb. 22.  
  • Managed care payments will be processed in March 2022 for the plans.   
  • DHCS will distribute directed payment schedules to hospitals and plans in February.  
  • Plan payments to hospitals are expected by the end of April 2022.