CMS Approves the Calendar Year 2023 Private Hospital Directed Payment Preprint
What’s happening: On March 18, the Centers for Medicare & Medicaid Services (CMS) approved the calendar year 2023 private hospital directed payment (PHDP) preprint for the rating period from Jan. 1, 2023, to Dec. 31, 2023.
What else to know: A copy of the federal approval letter is available on CHA’s Hospital Fee Program web page under Program 8.
DHCS Receives Federal Approval of the 2023-24 Hospital Fee Program
What’s happening: On Dec. 15, the Department of Health Care Services (DHCS) received federal approval of the 2023-24 Hospital Fee Program, originally submitted in March 2023.
What else to know: The program runs from Jan. 1, 2023, to Dec. 31, 2024, and will provide California’s hospitals with an annual net benefit of approximately $5.3 billion per year on an accrual basis over the 24-month period.
Hospital Fee Program Status
The Hospital Quality Assurance Fee (HQAF) Program and all of its statutory provisions were made permanent through the passage of CHA’s ballot initiative, the Medi-Cal Funding and Accountability Act (Proposition 52), in the November 2016 general election. While this provides the framework for all future hospital fee programs, future iterations must adhere to federal regulations related to health-care provider taxes. Further, the Department of Health Care Services (DHCS) must obtain all necessary federal approvals.