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.
HHS Takes Initial Step Toward Restarting Review Process for 340B Rebate Model
What's happening: The Department of Health and Human Services (HHS) has taken a step toward restarting the administrative process for establishing a 340B rebate model, filing a notice with the Office of Management and Budget that it will look to publish an advance notice of proposed rulemaking. The timing of a proposed rule is unclear at this time, but CHA will keep members apprised of any new administrative process that is put forward.
Hospital Fee Program Invoices Due Feb. 25
What’s happening: Payments for the Hospital Fee Program 8 directed payment for cycle MC2 DPa are due to the Department of Health Care Services (DHCS) on Feb. 25. It is critical that all hospitals pay their invoices in full and on time.
CMS Issues Updated Guidance on Medicaid State-Directed Payments
What’s happening: On Feb. 2, the Centers for Medicare & Medicaid Services (CMS) issued a letter providing guidance on Section 71116 of the One Big Beautiful Bill Act, which eventually limits the total managed care payment rate received by hospitals to Medicare levels after a temporary grandfathering period. This letter supersedes the guidance CMS released on Sept. 9, 2025.
Federal Spending Deal Includes Key Wins for Hospital Care
Hospitals and health systems are getting some financial relief and operational predictability, thanks to a bipartisan health care spending bill signed by President Trump earlier this week.
CHA Urges State to Leverage MCO Funds to Support Directed Payments, Ensure Compliance with Prop. 35 Provisions
What’s happening: Following this month’s release of the 2025-26 spending plan for managed care organization (MCO) tax proceeds generated under Proposition 35 (2024), CHA has submitted recommendations to Department of Health Care Services (DHCS) Director Michelle Baass.
DHCS to Host Webinar on Implementation of One Big Beautiful Bill Act
What’s happening: On Feb. 5 at 11 a.m. (PT), the Department of Health Care Services will host an “all-comer” webinar to walk through its implementation plan for House Resolution (H.R.) 1, the One Big Beautiful Bill Act, which will make sweeping changes to Medicaid.
Inpatient Post-Acute Care Transfer Policy Analysis Shows Impact on FFS Payments
What’s happening: DataSuite has issued hospital-specific analyses of the inpatient post-acute care transfer (PACT) adjustment policy. The analysis shows the estimated impact on Medicare inpatient fee-for-service payments, and corresponding Medicare severity diagnosis-related group (MS-DRG) volumes from the inpatient prospective payment system (IPPS) during federal fiscal years 2021-26.
Prop 35 Advisory Committee Presents Revised 2025-26 Spending Plan at January Meeting
What’s happening: At its Jan. 14 meeting, the Proposition 35 Protect Access to Health Care Act Stakeholder Advisory Committee was presented a revised spending plan for calendar years 2025 and 2026. The spending plan reflects investments supported by managed care organization (MCO) tax proceeds generated from taxes imposed on Medi-Cal managed care plans.
CHA’s ‘Hospital 101’ Briefing for State Legislators and Staff Offers Overview of Hospital Landscape
What’s happening: On Jan. 13, CHA hosted a Hospital 101 briefing to educate more than 60 legislators and legislative staff on hospitals’ role in the health care ecosystem ahead of the new legislative session.
CHA Publishes New Advocacy Materials on Priority Issues for 2026
What’s happening: CHA’s board has approved three advocacy priorities for California hospitals in 2026: Office of Health Care Affordability (OHCA), Securing Hospitals, and Ballot Initiatives. New and updated advocacy materials for two of these priority issues are available on CHA’s website.