CHA News

Hospital Licensing Fees Increase, but Less Than Expected

For CFOs, licensing & certification staff

This post has been archived and contains information that may be out of date.

The California Department of Public Health (CDPH) has released its final fee schedule for the state fiscal year 2020-21. While  licensing fees have increased, the increase is significantly less than CDPH proposed in February. Specifically, fees statewide were proposed to increase 28%, but instead have increased 15%. Fees in Los Angeles County were proposed to increase 35%, but instead have increased 20%.  

CDPH states two reasons for these revisions. First, the beginning fund balance was higher than previously expected due to year-end actuals from 2018-19. Second, several of CDPH’s budget change proposals were either deferred or modified, which reduced its projected expenditures. Both factors meant less revenue was needed to support the Licensing and Certification Program. 

These licensing fees apply to general acute care hospitals and acute psychiatric hospitals and are effective as of July 1.