What’s happening: At the Office of Health Care Affordability’s (OHCA’s) March 25 board meeting, the board discussed the hospital sector proposal and reviewed initial feedback from interviews with hospitals. While no final decisions or changes were made, the board signaled openness to reintroducing a limited exclusion for small hospitals.
What else to know: In written and verbal comments, CHA and hospital members pushed back against OHCA’s high-cost hospital proposal, finding it premature, based on anomalous data and biased methodologies — and certain to significantly harm access to high-quality hospital care in communities throughout California.
Sustained feedback from the entire hospital field is needed to oppose the proposal, which could continue to evolve before adoption. Final action must occur by June 1 to be effective for 2026, but may come as soon as April 22. There are two key upcoming opportunities for hospitals to share their feedback:
- Written comments due April 11 on the proposed hospital sector spending targets
- Written and verbal comments for the April 22 board meeting (written comments due April 17)
At the board meeting, OHCA staff announced the resignation of Board Member David Carlisle, with the March meeting being his last. The board also heard from leaders of Massachusetts and Oregon’s cost target programs and received an update on the state’s new all-payer claims database, the latter of which continues to gain functionality.
