About Affordability
Health care is a basic human need, one that Californians rely on to live, grow, and prosper. Unfortunately, the cost of care has become too high for many working families. For years, California’s hospitals have made headway toward controlling costs. To ensure care for every Californian, the entire health care field must tighten its belt — insurance companies, physicians, labor unions, hospitals, pharmaceutical companies, and more.
Improving affordability is a priority for California hospitals — but with nearly two-thirds of health care spending occurring outside of hospitals, solving this challenge will take a combined effort from the entire health care system. To move toward our shared goals of affordable, equitable, and high-quality health care, hospitals work closely with the Office of Health Care Affordability.
Gov. Newsom Previews 2024-25 State Budget Proposal Ahead of Jan. 10 Release
What’s happening: In a high-level preview to reporters on Jan. 6, Gov. Gavin Newsom shared that his budget proposal features improved revenue projections, which help to keep the $322 billion spending plan in balance.
What else to know: The preview took place during Newsom’s tour of the Central Valley to promote his economic vision for the state, which includes key themes of government accountability, reducing the cost of living, and keeping California competitive.
OHCA Board Could Approve Creation of Statewide Hospital Sector in Early 2025
What’s happening: The Office of Health Care Affordability (OHCA) board met earlier this week to discuss options for defining hospitals as a sector for spending target purposes, as well as receive an update on progress toward adopting a behavioral health investment benchmark.
What else to know: CHA wrote to the board and provided public comment, pressing that the adoption of a hospital sector definition is premature and misguided, while stating the importance of including the full continuum of clinically appropriate services in OHCA’s behavioral health investment benchmark.
OHCA Board Selects a New Chair, Deliberates Over Hospital Sector Targets and More
What’s happening: At its most recent meeting, the Office of Health Care Affordability (OHCA) board elected Kim Johnson, secretary of the California Health and Human Services Agency, as its new chair — and considered potential adoption of hospital sector targets, a provisional approach to measuring hospital spending, and a proposal for tracking quality and equity.
What else to know: Ahead of the meeting, CHA wrote to the board on these topics, urging further learning and progress toward implementation before adopting sector targets; supporting a comprehensive yet streamlined approach to measuring quality, equity, and access; and asking that the behavioral health investment goal consider the full continuum of behavioral health services.
2024 Legislative Wrap-up
Don’t miss CHA’s upcoming webinar — your essential guide to navigating new health care laws and regulations. This interactive session is designed to give you a clear, actionable understanding of the latest legislative updates that could impact your operations. Our expert panel will cover key 2024 legislation, highlight crucial deadlines, and answer your pressing questions, ensuring you’re well-prepared for the challenges and opportunities ahead.
OHCA Maintains Focus on Hospitals at October Board Meeting
What’s happening: At the Office of Health Care Affordability’s (OHCA) Oct. 14 board meeting in Sacramento, board members expressed interest in moving swiftly on adopting a regional hospital sector spending target, at least in Monterey County, which OHCA announced will also be the subject of an investigative hospital market competition study.
What else to know: The board welcomed its newest member and approved the state’s first primary care investment benchmark.
OHCA Board Picking Up Pace, Without Deeper Examination
The California Office of Health Care Affordability (OHCA) continues to press forward with analyses, investigations, and policies that do not take into full account the impact of their proposals on patient care. Given that, it’s vital that hospitals make certain that the effect on patients and communities is not lost from the conversation.
CHA Pushes Back on Misleading Information Shared at August OHCA Board Meeting
What’s happening: CHA has submitted a letter to the Office of Health Care Affordability (OHCA), setting the record straight on misleading, incomplete information shared during the OHCA board’s August meeting in Monterey.
What else to know: CHA’s letter also urges OHCA to renew its commitment to inclusivity and balance in the issues, perspectives, and information it explores in the future.
CHA Presses Quality, Access, Equity Perspective During Capitol Weekly Panel on OHCA
What’s happening: During a panel discussion last week, CHA shared hospital perspectives on how the Office of Health Care Affordability (OHCA) can make care more affordable while protecting access to high-quality, equitable care.
What else to know: CHA participated in a four-person panel on OHCA hosted by Capitol Weekly during the publication’s annual conference focused on health care.
Transition on OHCA Board as Hospital Spending and Measurement Workgroup Wraps for the Year
What’s happening: Mark Ghaly, MD, MPH, has resigned as secretary of the California Health and Human Services Agency (CalHHS). His seat on the OHCA board will transition to the newly appointed secretary, Kim Johnson, or her designee.
What else to know: Since April, the Office of Health Care Affordability (OHCA) has been convening a workgroup to obtain stakeholder input on how hospital spending growth will be measured against the spending target.
Regional Differences in Health Care Spending, Options to Address High Costs Discussed at OHCA Monterey Board Meeting
What’s happening: The Office of Health Care Affordability (OHCA) board meeting yesterday focused on high costs in the Monterey region from a consumer and purchaser perspective. Ahead of the meeting, CHA submitted comments urging the office to look closely at the factors driving regional differences in health care spending.
What else to know: Separately, last week, OHCA finalized changes to the state cost and market impact review regulations, with immediate effect.