Court Rules FDA Cannot Regulate Laboratory-Developed Tests

What’s happening: In a final judgment filed March 31, the U.S. District Court for Eastern Texas ruled that the Food & Drug Administration (FDA) does not have the authority to regulate laboratory-developed tests, rendering a final rule issued May 6, 2024, null and void.  

What else to know: This final rule phased out the FDA’s general enforcement discretion approach for most laboratory-developed tests to instead provide greater oversight.  

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Fee Program Proposal Submitted to CMS, Approval Typically Takes Up to Nine Months

Last week, and on schedule, the state Department of Health Care Services submitted the proposed model for the next iteration of the hospital fee program to the Centers for Medicare & Medicaid Services. 

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2025 Emergency Services Forum Takes Place May 5 in Newport Beach

What’s happening: This year’s Emergency Services Forum is happening in Newport Beach on May 5 from 8 a.m. to 4 p.m. (PT). Attendees can expect dynamic sessions covering industry topics, insights into the evolving behavioral health landscape, an interactive Q&A forum, and more. Registration is open, and early bird pricing ends April 8.  

What else to know: The forum kicks off with a keynote address by Liz Basnett, director of the California Emergency Medical Services Authority (EMSA), who will provide transparency on EMSA’s requirements, as well as share efforts to modernize and update regulations to meet emergency services’ increasing needs.  

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Protecting Access to Care for All Californians

California hospitals make miracles a daily routine.

They save the lives of extremely premature babies, extend the lives of cancer and other patients, improve the lives of those experiencing traumatic illness and bodily harm, and more. Californians need and deserve these services, along with the ability to access them through their health coverage.

With 53% of California hospitals losing money every day to care for patients, the health care services upon which their communities rely are at risk. When a hospital closes because of underpayment from Medicare or Medicaid, it closes for everybody.

How Hospitals Are Financed
Government payers — Medicaid and Medicare, which cover 73% of hospital patient volume — don’t cover costs. Medicaid pays just 80% of what it costs hospitals to care for patients, and Medicare covers just 76%.

Congress should protect people and communities at risk of losing vital health services by:

2/3

of all hospitals have negative operating margins

$1.2 billion

the amount hospitals would lose if DSH cuts go through

8 points

the drop in critical access hospitals’ operating margins since 2019

Hospital Fee Program IX Webinar Participant Information Page

The Department of Health Care Services (DHCS) recently submitted a final draft of the Hospital Fee Program (IX) fee and payment model to the Centers for Medicare & Medicaid Services (CMS). 

The model should be considered a draft until the state receives official CMS approval, which is expected to take four to six months. CHA will release a final model following CMS approval.  

Join CHA’s Adam Dorsey and Jesse Delis as they provide a brief history on the Hospital Fee Program (IX), a summary of changes, and the future landscape of the program.

This content is restricted to members.

Hospitals Call Out Office of Health Care Affordability’s Flaws in Setting Limits on Health Care Spending

SACRAMENTO (March 26, 2025) — “The Office of Health Care Affordability’s (OHCA’s) efforts to impose below-cost spending caps on hospitals —and call out 11 specific hospitals for even deeper cuts— is premature and without solid basis,” said Carmela Coyle, President & CEO of the California Hospital Association. “The decisions made by the OHCA Board will cap how much can be spent on health care for Californians — that means real pain for real people.”

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2022 Report on State Legislation

The 2022 Report on State Legislation is designed to be shared with your leadership team so they are apprised of new laws and can take any steps needed to implement the requirements. As you have continued to care for all Californians, CHA has worked with the Legislature to secure the most favorable outcome possible on dozens of bills that affect hospitals.

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Urge Opposition to SB 632’s Workers’ Compensation Changes by April 2

What’s happening: Senate Bill (SB) 632 would create a private sector workers’ compensation presumption that a variety of illnesses and injuries, including COVID-19, arose in the course of providing direct patient care at hospitals. It is critical that hospitals urge opposition to this bill. 

What else to know: Hospitals are encouraged to write a letter urging Sen. Lola Smallwood-Cuevas, chair of the state Senate Committee on Labor, Public Employment and Retirement, to oppose this bill. The deadline to submit letters is noon (PT) on April 2, and the committee will hear the bill on April 9.  

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Hospitals: Let Congress Know How Medicaid Cuts Will Impact People, Communities

What’s happening: As Congress works on a federal budget for 2026 that could result in devastating cuts to Medicaid (Medi-Cal in California), it is imperative that all hospital leaders let members of Congress know directly the impact these cuts will have on the people and communities they represent. Representatives will be home in their districts from April 11-27, which is an excellent time to invite your representative to come visit their local hospital.

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2025 Consent Law Seminar Covers Federal Health Care Guidelines, Recent State Statutes

What’s happening: On April 23 and May 19, CHA is hosting the 2025 Consent Law Seminar in Burbank and Sacramento, respectively; a livestream option is also available for the May 19 date.  

What else to know: The seminar will cover new federal health care guidelines and recent state statutes, including how, together, Assembly Bill 2275 and Senate Bill 43 impact involuntary holds. Visit the event web page to register and view the full agenda.  

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