CHA News

OHCA Proposes Revisions to Cost and Market Impact Review Regulations

What’s happening: Regulatory changes proposed by Office of Health Care Affordability (OHCA), including the ability to withdraw information for which a request for confidentiality was denied, largely aim to clarify existing rules. 

What else to know: Public comment on the proposal released last week is due June 20. The proposal will be discussed at the OHCA board meeting on June 26. 

OHCA prospectively reviews “material” market transactions among health care providers and payers as part of its market oversight responsibilities. While OHCA does not have authority to block or place conditions on transactions, its cost and market impact reviews (CMIRs) are intended to provide information to the public on the potential impacts of the transaction, such as on costs and competition. 

In December 2023, OHCA finalized its CMIR regulations. After previously releasing and then rescinding proposed changes to the regulations last month, OHCA last week re-released proposed revisions.  

Major proposed changes include: 

  • Requiring parent companies of health care entities to file notices of material change transactions 
  • Allowing health care entities to withdraw information for which a request for confidentiality was denied 
  • Expanding the list of factors considered by OHCA to include whether a transaction would impact compliance with the spending target(s) 
  • Extending various provisions to fully integrated delivery systems 

Contact Ben Johnson, vice president, policy, at bjohnson@calhospital.org and Lois Richardson, vice president, legal counsel, at lrichardson@calhospital.org with any questions or feedback on the proposed changes.