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 Submits Hospital Fee Program 10 to CMS
What’s happening: Last week, the California Department of Health Care Services (DHCS) submitted its Hospital Fee Program tax model for calendar year 2026 (Program 10) to the Centers for Medicare & Medicaid Services (CMS).
State to Issue DSH April Payments Starting Next Week
What’s happening: The Department of Health Care Services (DHCS) will issue disproportionate share hospital (DSH) April payments for the period of February-March 2026.
DHCS Releases Private Hospital-Directed Payment Encounter Files
What’s happening: On March 27, the Department of Health Care Services (DHCS) uploaded three new hospital data sets that hospitals must download before the files are deleted on May 11.
House Letter Urges Appropriators to Block Funding for 340B Rebate Model
What’s happening: U.S. Rep. Doris Matsui led a bipartisan letter requesting that the fiscal year 2027 appropriations bill include language barring the use of funds for implementation of any 340B Rebate Model, including the previously proposed pilot program.
Recording of Hospital Fee Program Executive Briefing Now Available
What’s happening: A recording of CHA’s March 18 executive briefing on the Hospital Fee Program is now available for members who may have missed it.
CHA Joins Lawmakers, Hospital Leaders at San Diego Health Care Roundtable
What’s happening: On March 20, CHA participated in a health care roundtable hosted by Sen. Catherine Blakespear (D‑Carlsbad) and Scripps Health. The event, which was held at Scripps Memorial Hospital Encinitas, brought together California lawmakers and health care leaders from the San Diego region to discuss key issues hospitals are facing.
Medicaid State-Directed Payments Help Ensure Patient Access to Care
About State-Directed Payments (SDPs) SDPs are additional payments made to health care providers to support Medicaid quality and access goals. The Centers for Medicare & Medicaid Services (CMS) reviews and approves SDPs for each 12-month rating period. Payments to providers are made via managed care organizations (MCOs) and are based on utilization of Medicaid services....
Medicaid Provider Taxes Protect Californians’ Access to Care
Medicaid provider taxes are a cornerstone of the Medicaid financing structure. Without federal revenue generated from these taxes, reimbursement for care provided to patients covered by Medicaid would be woefully insufficient and health care access would be at grave risk. For many hospitals, losing this revenue would mean closure of service lines; for others, it...
CHA Document Details Considerations for Freestanding ED Model
What’s happening: Recognizing that some hospital leaders have expressed interest in the concept of freestanding emergency departments (EDs) — which are not currently permitted in California — CHA has developed a document that outlines the current regulatory landscape and key considerations for this type of service model.
State Files Revised Hospital Fee Program Application
What’s happening: Last week, the California Department of Health Care Services (DHCS) submitted its revised Hospital Fee Program tax model for calendar year 2025 (Program 9) to the Centers for Medicare & Medicaid Services (CMS).