About Finance & Reimbursement
Vulnerable Californians who rely on the care provided by California hospitals are at risk. Driven by skyrocketing costs for labor, pharmaceuticals, regulatory mandates, and more, 53% of all hospitals statewide lose money every day to deliver patient care.
That isn’t sustainable. And California is already seeing the frightening result: rural health care services being cut to the bone, severe behavioral health care needs not being met, and more.
CMS Approves Hospital Fee Program 9
What’s happening: Last week, the Centers for Medicare & Medicaid Services approved the most critical components of California’s 2025 Hospital Fee Program (Program 9).
CHA, Hospital Advocacy Stalls Bill Prohibiting Facility Fees
What’s happening: This week, Assemblymember Mia Bonta (D-Alameda) pulled Assembly Bill (AB) 225, her authored bill that would have prohibited hospitals from charging facility fees for certain services provided in off-campus outpatient departments, from the July 1 Senate Health Committee agenda.
DHCS to Host July 9 Webinar on Value Strategy
What's happening: The Department of Health Care Services (DHCS) will host a public webinar on July 9 from 3:30 to 5 p.m. (PT) to discuss its long-term vision for advancing value in Medi-Cal.
Financial Indicator Analysis Now Available
What’s happening: CHA DataSuite has issued hospital-specific financial indicator analysis using first-quarter 2026 data from the Healthcare Cost Report Information System.
HCAI Releases New Details on CalRHT Funding Opportunities
What’s happening: The Department of Health Care Access and Information (HCAI) this week released details on forthcoming grants under the California Rural Health Transformation (CalRHT) program. The first opportunity is intended for “accelerator partners,” aimed at supporting collaborative models to strengthen primary and maternity care in rural communities; a grant guide is now available and applications will open...
Key Messages: Facility Fees Help Keep Health Care Services Close to Home
Facility fees support the clinical staff, infrastructure, and services needed to provide care in community-based outpatient settings — keeping clinics open and accessible, supporting high-quality care, and enabling patients to receive care close to home and avoid a hospital emergency department (ED).
The Facts on AB 225 (Bonta)
MYTH: Eliminating facility fees will result in lower health care costs for patients. FACT: Eliminating facility fees could actually increase costs by forcing patients to receive care in higher-cost settings. Without facility fees, telehealth services and community clinics may close, leaving patients with fewer options and increased reliance on hospital emergency departments. Keeping...
Bill Brief: Californians Need Access to Community-Based Care
Medicare and Medi-Cal underfunding have put the health care system on the precipice.
Hospitals Must Complete Occupational Mix Survey by June 30
What’s happening: Hospitals are required to complete the new occupational mix survey for the federal fiscal year (FFY) 2028 wage index and submit it to their Medicare Administrative Contractor by June 30.
Two Hospital-Specific Quality Analyses Available from CHA DataSuite
What’s happening: CHA DataSuite has issued hospital-specific analyses of the Value-Based Purchasing (VBP) Program and the Hospital-Acquired Condition (HAC) Reduction Program for federal fiscal year (FFY) 2027.