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.
Governor’s May Revision Proposes Backfilling Budget with Prop 35 Funds
What’s happening: On May 14, Gov. Gavin Newsom released his May Revision budget proposal for 2025-26, which diverts much of the funds from Proposition (Prop) 35 away from their intended purpose — provider payment increases — to address a $12 billion projected budget deficit.
Proposed Changes to Medicaid Health Care-Related Tax Rules Threaten MCO Tax, Hospital Fee Program
What’s happening: The Centers for Medicare & Medicaid Services (CMS) has issued proposed changes to the Medicaid health care-related tax rules that present significant risks for California’s managed care organization (MCO) tax and Hospital Quality Assurance Fee Program — both of which hospitals rely on to deliver patient care. Comments on the proposed rule are due to CMS by July 14.
Budget Proposal Would Cut Tens of Billions from Medicaid
What’s happening: On May 14, the House Energy and Commerce Committee finalized bill language that proposes major cuts and policy changes to the Medicaid program (Medi-Cal in California) that would severely impact California’s health care system.
Executive Briefing: Federal and State Budget Impacts to Medi-Cal
On May 14, 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 Advisory Committee Will Convene May 19
What’s happening: On May 19 from 10 a.m. to 3 p.m. (PT), the Proposition (Prop) 35 “Protect Access to Health Care Act” Stakeholder Advisory Committee will hold its second meeting at the Department of Health Care Services (DHCS) in Sacramento. This meeting is open to the public, and registration for virtual attendance is open.
Hospital Fee Program 8 Invoices Past Due
What’s happening: Payments for the Hospital Quality Assurance Fee program 8 fee-for-service were due to the Department of Health Care Services (DHCS) on May 7.
Hospital Leaders Take Message on Threats to Medicaid, Medicare to Capitol Hill
What’s happening: As part of the American Hospital Association Annual Meeting held in Washington, D.C., this week, California hospital and health system leaders participated in more than 20 meetings with the California congressional delegation.
Four New Analyses Cover Medicare Quality Programs, Medicare Spending Per Beneficiary, Inpatient Quality Measure Trends, Value-Based Purchasing
What’s happening: CHA DataSuite released four hospital-specific analyses intended to provide hospitals with a preview of impacts and trends related to various programs.
Upcoming Webinar to Detail IPPS Proposed Rule’s Impact
What’s happening: On May 21, CHA will host a members-only webinar to discuss the Centers for Medicare & Medicaid Services’ (CMS’) federal fiscal year (FFY) 2026 inpatient prospective payment system (IPPS) proposed rule, which includes a net 2.4% payment rate increase — far below what hospitals need to keep up with rising costs and health care needs.
CHA Recommends Prop 35 Funding Methodology to DHCS
What’s happening: On April 25, CHA submitted to the California Department of Health Care Services (DHCS) comments on how to best allocate Proposition (Prop) 35 funding in 2025 and beyond.