CHA News

New Resources Allow Hospitals to See Where They Fall Under OHCA’s ‘High Cost’ Methodology

What’s happening: CHA has created a data tool to help members replicate calculations used by the Office of Health Care Affordability (OHCA) to identify so-called “high-cost” hospitals and assess how close they may be to the threshold. 

What else to know: In April 2025, OHCA adopted reduced spending targets starting at 1.8% for hospitals designated as high cost. Hospitals above the 85th percentile on two reimbursement measures for 3 out of 5 years spanning 2018 through 2022 were struck with the lower targets. Previously, OHCA publicly disclosed only the values for hospitals at the top end of these measures.  

Following the correction of a recently identified coding error, this month OHCA released Hospital Cost Dataset and Hospital Cost Documentation materials. The dataset shows OHCA’s calculated value for each hospital on the two measures it uses to determine whether a hospital is high cost. The documentation contains instructions on OHCA’s calculation of these values using hospitals’ financial and utilization reports.