About Medi-Cal
More than 15 million Californians rely on Medi-Cal, the state’s version of the federal program known as Medicaid, for health insurance. The program acts as California’s health care coverage safety net, with those on Medi-Cal often living in communities with a lack of adequate health care providers. Without significant investments to support providers that deliver health care to California’s most vulnerable, millions living in rural and underserved areas are in jeopardy.
Governor’s May Budget Revise Proposes Significant Medi-Cal Coverage Changes, $50 Million for Distressed Hospitals
What’s happening: Today, Gov. Newsom released his May Revision budget proposal, which includes changes to Medi-Cal coverage along with spending cuts and revenue increases to address the long-term structural budget deficit. The proposal also includes $50 million to provide short-term support for distressed hospitals and commits to working with the Legislature on the issue.
Applications for Distressed Hospital Small Grant Program Due May 18
What’s happening: Following the governor’s signing of Assembly Bill 108 (Gabriel, D-Encino) last week, the Department of Health Care Access and Information has established the Distressed Hospital Small Grant Program, which will provide $25 million to assist hospitals in immediate and severe financial distress. HCAI has released the grant application, which is due May 18 by 5 p.m. (PT).
May Budget Revise Approaches with Mixed Fiscal Signals
What’s happening: The governor is expected to release his May budget revise next week, which will kick off budget negotiations with the Legislature ahead of the June 30 deadline.
CHA Warns of Growing Financial Strain on Hospitals at Budget Subcommittee Hearing
What’s happening: On April 6, the Assembly Budget Subcommittee on Health held a hearing to continue its overview of the state’s budget condition and impacts of the One Big Beautiful Bill Act (OBBBA).
DHCS Issues RFI to Shape Comprehensive Hospital Value Strategy
What’s happening: The Department of Health Care Services (DHCS) has issued a request for information that seeks to collect input from stakeholders and shape DHCS’ comprehensive “Hospital Value Strategy.” The RFI deadline is April 17.
State Submits Hospital Fee Program 10 to CMS
What’s happening: Last week, the California Department of Health Care Services (DHCS) submitted its Hospital Fee Program tax model for calendar year 2026 (Program 10) to the Centers for Medicare & Medicaid Services (CMS).
State to Issue DSH April Payments Starting Next Week
What’s happening: The Department of Health Care Services (DHCS) will issue disproportionate share hospital (DSH) April payments for the period of February-March 2026.
DHCS Releases Private Hospital-Directed Payment Encounter Files
What’s happening: On March 27, the Department of Health Care Services (DHCS) uploaded three new hospital data sets that hospitals must download before the files are deleted on May 11.
Recording of Hospital Fee Program Executive Briefing Now Available
What’s happening: A recording of CHA’s March 18 executive briefing on the Hospital Fee Program is now available for members who may have missed it.
Medicaid State-Directed Payments Help Ensure Patient Access to Care
About State-Directed Payments (SDPs) SDPs are additional payments made to health care providers to support Medicaid quality and access goals. The Centers for Medicare & Medicaid Services (CMS) reviews and approves SDPs for each 12-month rating period. Payments to providers are made via managed care organizations (MCOs) and are based on utilization of Medicaid services....