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.
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.
Download Private Hospital-Directed Payment Encounter Files by Feb. 5
What’s happening: On Dec. 26, 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 Feb. 5.
2026-27 State Budget to be Released Tomorrow
What’s happening: Governor Gavin Newsom will release his proposed budget for 2026-27 tomorrow, kicking off the state budget process and legislative budget hearings that will continue until the budget is finalized this summer.
CMS Awards California $234M in Rural Transformation Grant Funding
What’s happening: On Dec. 29, the Centers for Medicare & Medicaid Services (CMS) released the much-anticipated Rural Health Transformation Program (RHTP) award announcements. While all 50 states were awarded RHTP funds, California earned an award of $233.6 million in the first year, the third-highest dollar amount award of any state.
DHCS Granted 60-Day Extension to Revise Hospital Fee Program 9 Application
What’s happening: The Department of Health Care Services (DHCS) has until March 13 to submit a revised 2025 Hospital Quality Assurance Fee Program application to the Centers for Medicare & Medicaid Services (CMS), following questions CMS raised about the program’s size.
Issue Brief: Time Is Running Short to Save Hospitals, Preserve Access to Health Care
Medicare and Medi-Cal underfunding have put the health care system on the precipice.
Key Messages: California’s Health Care System Is on Life Support
The risk of losing access to critical health care services for Californians has never been greater.
Infographic: Financial Instability
Federal Funding Will Bolster Medi-Cal Reimbursement for Inpatient Psychiatric Care
What’s happening: On Dec. 16, California was approved for the large BH-CONNECT behavioral health demonstration project, which is estimated to bring $5 billion of new federal Medicaid dollars for California over the next five years.