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.
OHCA Board Approves Creation of Hospital Sector, Paves Way for Lower Spending Targets in 2026
What’s happening: At the Jan. 28 Office of Health Care Affordability (OHCA) board meeting, the board voted 6-0 to create a statewide hospital sector and focused on options for imposing stricter spending targets on a limited set of “high-cost” hospitals.
What else to know: In February, OHCA staff will propose methodologies for determining which hospitals are high cost and what the spending target values will be. To set a lower sector spending target for at least some hospitals in 2026, OHCA’s board must take formal action by June 1, 2025.
Executive Update: Office of Health Care Affordability Focuses Its Attention on Hospitals
The Office of Health Care Affordability (OHCA) is moving at a rapid pace, implementing ambitious spending targets and other rules. OHCA has recently turned its attention toward the hospital field, with a goal of adding further restrictions on spending growth for at least some hospitals.
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.
Keep an Eye on Your Inbox for Key Election Results
Election Day is just five days away, and the outcome will have significant consequences for our nation, California, and the state’s health care system. The result of the presidential race alone could lead to significant changes in health care policy across the board.
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.