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.
Federal Agencies Will Not Enforce Mental Health Parity Final Rule
What’s happening: On May 15, the U.S. departments of Labor, Health and Human Services, and the Treasury announced that they will not enforce the 2024 mental health parity final rule that aimed to improve access to mental health services by requiring health plans to make changes when inadequate access is provided.
Summary Details CMS Proposal to Modify Health Care-Related Taxes
What’s happening: Earlier this month, the Centers for Medicare & Medicaid Services (CMS) proposed changes to Medicaid health care-related tax rules that pose significant risks to California’s managed care organization (MCO) tax and Hospital Quality Assurance Fee Program.
Prop 35 Advisory Committee Meeting Covers May Revision Funding Sweep, DHCS Proposals
What’s happening: At its May 19 meeting, the Proposition (Prop) 35 “Protect Access to Health Care Act” Stakeholder Advisory Committee heard stakeholder concerns about Gov. Gavin Newsom’s May budget revision, which redirects Prop 35 funding rather than allocating it for provider payment increases as intended.
Hospitals Should Review Medicare Hospital FFY 2026 Wage Index and Occupational Mix Final Data
What’s happening: CHA DataSuite has issued a hospital-specific analysis of the Medicare hospital federal fiscal year (FFY) 2026 wage index and occupational mix data. It is important that hospitals review these wage data and submit disputes and/or correction requests by May 30.
Federal, State Budget Proposals Threaten Health Care in California
What’s happening: Yesterday, Gov. Gavin Newsom released the May budget revision, which included proposals to pull away $1.6 billion in funding dedicated to health care organizations through last year’s Proposition 35. This came just days after the House Energy and Commerce Committee released a proposal to cut more than $715 billion from Medicaid (Medi-Cal in California).
Prop 35 Executive Briefing Covers Delays, Next Steps
What’s happening: At the May 8 executive briefing on Proposition (Prop) 35, CHA provided an update on the state’s budget environment, noting the fiscal trouble the state faces, and discussed state delays in moving forward with implementation of Prop 35 payments.
CHA Issues Summaries of IPPS, LTCH PPS Proposed Rule
What’s happening: Summaries of the federal fiscal year 2026 inpatient prospective payment system (IPPS) and long-term care hospital (LTCH) PPS proposed rule are now available, and on May 21, CHA will host a complimentary, members-only webinar on the IPPS provisions.
Medicare IPPS Proposed Rule Impact Analysis Shows Potential Payment Changes
What’s happening: CHA DataSuite has released a hospital-specific analysis of the federal fiscal year (FFY) 2026 Medicare inpatient prospective payment system (IPPS) proposed rule that shows hospitals how Medicare inpatient fee-for-service payments may, based on policies set forth in the proposed rule, change from FFY 2025 to FFY 2026.