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.
State Budget Includes Key Health Care Provisions
What’s happening: Earlier this week, the Senate, Assembly, and governor reached agreement on the revised 2026-27 state budget. The Senate and Assembly then approved trailer bill measures — including Assembly Bill (AB) /Senate Bill (SB) 173 and AB/SB 113, which relate to health care.
Hospitals Should Plan to Attend MCP Value-Based Payment Contracting Conference
What’s happening: The Department of Health Care Services (DHCS) is hosting hospitals and Medi-Cal managed care plans (MCPs) for a Value-Based Payment (VBP) Contracting Conference on Oct. 15 in Sacramento.
CHA Emphasizes Provider Perspectives at Latest Future of Medi-Cal Commission Advisory Group Meeting
What’s happening: The California Health Care Foundation’s Future of Medi-Cal Commission Advisory Group met last week, with discussion focused on implementing reforms well, strengthening accountability, simplifying Medi-Cal while protecting core benefits, and using data and technology to improve the member experience.
CHA, DHCS Still Awaiting Approval of Hospital Fee Program 9
What’s happening: On Aug. 14, CHA met with the Department of Health Care Services (DHCS) to discuss Hospital Fee Program 9 fee-for-service (FFS) approval, as well as an updated timeline for Program 10 resubmission.
DHCS Releases Private Hospital-Directed Payment Encounter Files
What’s happening: On July 31, the Department of Health Care Services (DHCS) uploaded two new hospital data sets that hospitals must download before the files are deleted on Sept. 14.
CMS Proposes Changes to Medicaid Provider Tax Rules
What's happening: The Centers for Medicare & Medicaid Services (CMS) has released a proposed rule implementing the provider tax provisions included in the One Big Beautiful Bill Act (OBBBA), while also proposing additional policy changes that would strengthen federal oversight of Medicaid provider taxes.
CHA Formally Supports Measure to Increase CA’s Rainy Day Fund
What’s happening: This week, CHA’s Board of Trustees voted to formally support Proposition 2, the Save for California’s Future Act.
DHCS Releases Hospital Fee Program 9 Draft Fee & Payment Schedule
What's happening: With the major federal approvals of Hospital Fee Program 9 on June 26, the Department of Health Care Services (DHCS) can begin assessing the fee and implementing the managed care portion of the program. While federal approval of the fee-for-service (FFS) payment components is still pending and expected to be received in the coming weeks,...
Q1 2026 Inpatient Quality Program Measure Trends Analysis Released
What’s happening: CHA DataSuite has issued a hospital-specific analysis of the inpatient quality program measure trends with updated Care Compare data released in first quarter 2026. What else to know: The analysis is designed to provide hospitals with a comparative review of the quality data collected by the Centers for Medicare & Medicaid Services and published over time on Care Compare. The measures updated...