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.
House Passes Five-Year Extension of Hospital-at-Home Program
What’s happening: On Dec. 1, the U.S. House of Representatives passed the CHA-supported Hospital Inpatient Services Modernization Act (H.R. 4313) which would extend the Hospital-at-Home program for five years, through Sept. 30, 2030.
DHCS Releases Private Hospital-Directed Payment Encounter Files — Download by Jan. 5
What’s happening: On Nov. 21, the Department of Health Care Services (DHCS) uploaded three new hospital-directed payment encounter files, available via the Secure File Transfer Protocol (SFTP) site. The SFTP site is not intended for long-term storage, so files will be deleted Jan. 5, 2026.
CMS to Decrease Home Health Payments 1.3% in 2026
What’s happening: On Nov. 28, the Centers for Medicare & Medicaid Services (CMS) issued the calendar year (CY) 2026 home health prospective payment system final rule.
Hospitals Should Review and Update DHCS Contact Info by Dec. 12
What’s happening: The Department of Health Care Services (DHCS) Capitated Rates Development Division is asking providers to confirm their contact info as part of its ongoing efforts to maintain accurate and up-to-date contact information.
Executive Briefing: Hospital Fee Program
CHA to Host 2025 Legislative Wrap-Up Webinar on Dec. 3
What’s happening: On Dec. 3 from 2:30- 4 p.m. (PT), a panel of CHA experts will cover key legislation from the 2025 session, highlight crucial deadlines, and answer members’ questions.
Disproportionate Share Hospital “Catch-Up” Payments to Be Made in Early December
What’s happening: The Department of Health Care Services (DHCS) has outlined its schedule for issuing “catch-up” payments to hospitals in December, reflecting congressional action that delayed pending cuts to disproportionate share hospitals (DSHs).
CMS Issues Preliminary Guidance on Provider Taxes
What’s happening: On Nov. 14, the Centers for Medicare & Medicaid Services (CMS) issued preliminary guidance on new federal requirements for Medicaid health care-related taxes (i.e., provider taxes) included in the One Big Beautiful Bill Act (OBBBA).
At Budget Subcommittee Hearing, LAO Outlines Options for the State
What’s happening: Last week, the Legislative Analyst’s Office (LAO) presented at the Senate Budget Subcommittee on Health, sharing its perspective on how the One Big Beautiful Bill Act (OBBBA) will impact California. The LAO stressed the need for legislative oversight and possible policy action to minimize harm, and urged lawmakers to keep long-term system impacts and health equity at the forefront of their decision-making.
CHA Releases Guide to Improve Homelessness Reporting Ahead of Potential Reimbursement Changes
What’s happening: The Centers for Medicare & Medicaid Services (CMS) now considers homelessness a “complication or comorbidity,” acknowledging the increased care resources this population requires. This acknowledgement signals potential Medicare reimbursement changes in the future.