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New Chair and Members Elected to CHA Board of Trustees 

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What’s happening: Kerry L. Heinrich, President & CEO of Adventist Health, will lead CHA’s Board of Trustees in 2024.  

What else to know: Six new health care leaders from across California are joining the board.   

California Health Information Exchange Deadline Looms

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What’s happening: Assembly Bill 133 outlined the requirement for health care providers, plans, and other entities to exchange health information in real time for treatment, payment, or health care operations.   

What else to know: On Jan. 18, 2023, the California Health and Human Services Agency’s Center for Data Insights and Innovation released two new policies and procedures to facilitate compliance to the Data Exchange Framework (DxF).  

DHCS Must Take Steps to Ensure Network Adequacy

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What’s happening: In a letter to the California Health & Human Services Agency (HHS), CHA President & CEO Carmela Coyle expressed concern that arbitrary decisions by Medi-Cal managed care plans to terminate contracts with safety net hospitals undermines network adequacy and worsens existing critical capacity issues. 

What else to know: The letter also requests that HHS investigate and address recent concerns that have emerged in Orange County. HHS oversees the Department of Health Care Servies. 

CHA Analysis: Proposed MCO Tax Spending Plan Maintains Key State Commitment

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What’s happening: On Jan. 20, the California Department of Health Care Services (DHCS) published its spending plan on how the Newsom administration proposes to spend almost $2.7 billion in annual managed care organization (MCO) tax funds to improve Medi-Cal reimbursements. 

What else to know: CHA expects the proposal to be refined and finalized by July 2024 and implemented starting in 2025. 

OHCA Board and Advisory Committee Deliberate Over Proposed Spending Target 

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What’s happening: In separate meetings this week, members of the Office of Health Care Affordability’s (OHCA) board and advisory committee offered varying perspectives on OHCA’s proposed spending target of 3%, some endorsing the target and others questioning its rationale and attainability.

What else to know: CHA commented in writing and at both meetings testified in person, joined by hospital and health care organizations advocating for changes as OHCA contemplates a final target.

House Ways and Means Committee Advances Bipartisan Tax Package

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What’s happening: The House Ways and Means Committee voted 40-3 last week to advance the Tax Relief for American Families and Workers Act (TRAFWA) of 2024, which includes provisions that have bipartisan support.  

What else to know: To pay for the package cost, the legislation accelerates the employee retention credit (ERC) claims submission deadline to Jan. 31. The ERC is a refundable tax credit for employers, including hospitals, who kept workers on their payrolls during the COVID-19 pandemic. 

Congress Passes Legislation to Fund Government Through March

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What’s happening: On Jan. 18, the House and Senate passed legislation, known as a continuing resolution, to fund the federal government though March 1 for certain departments and March 8 for others. President Joe Biden signed the bill on Jan. 19.  

What else to know: The resolution included a CHA-supported provision to delay scheduled Medicaid disproportionate share hospital cuts until March 8. 

CMS Announces New Payment Model Targeting Behavioral Health

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What’s happening: The Centers for Medicare & Medicaid Services announced a new Innovation in Behavioral Health (IBH) Model on Jan. 18.  

What else to know: The Notice of Funding Opportunity will open in spring 2024, and up to eight states will be selected to participate. 

CHA DataSuite Releases Value-Based Purchasing Program Analysis

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What’s happening: CHA DataSuite has issued a hospital-specific analysis of the third quarter federal fiscal year (FFY) 2024 value-based purchasing program. 

What else to know: The analysis is intended to provide a preview to hospitals of the program’s potential impact for FFY 2025, based on the most recent publicly available data and program rules established by the Centers for Medicare & Medicaid Services.