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State Policymakers Reach a Budget Agreement with Major Implications for Hospitals

This post has been archived and contains information that may be out of date.

What’s happening: This week, the 2024-25 budget and supporting legislation will be signed by the governor, ensuring the spending plan is in place by July 1, the start of the fiscal year. 

What else to know: The budget includes important changes to the managed care organization (MCO) tax and the health care worker minimum wage, while also having implications for the hospital fee program. 

38 Members of CA Congressional Delegation Sign 340B Letter

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Last week, 216 members of the House of Representatives — including 38 members from the California delegation — signed a bipartisan letter asking U.S. Department of Health & Human Services Secretary Alex Azar to protect the 340B program discounts. 

Q&A with Dr. Carrie Byington of UC Health

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OHC sat down with Dr. Carrie L. Byington, executive vice president of University of California Health (UCH), to find out what drew her to California, how preventable differences affect health outcomes, and what the university’s data, expertise, and innovations mean for the Golden State.

Physicians Will See Medicare Payment Cuts Next Year

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What’s happening: The Centers for Medicare & Medicaid Services’ (CMS) 2024 physician fee schedule final rule reduces Medicare payments to physicians by 1.23% compared to the prior year.  

What else to know: The final 2024 physician fee schedule conversion factor is $32.74, a decrease of $1.15, or 3.4%, from 2023.   

Senate Passes Democratic Reconciliation Bill

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On Aug. 7, the U.S. Senate passed the Democratic budget reconciliation bill, the Inflation Reduction Act (H.R. 5376), which includes provisions on health care, climate, and tax policies. The roughly $740 billion party-line package passed 51-50, with Vice President Kamala Harris casting the tie-breaking vote.  

CMS Finalizes Skilled-Nursing Facility Staffing Standards 

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What’s happening: The Centers for Medicare & Medicaid Services (CMS) issued a final rule establishing new staffing standards for long-term care facilities, including skilled-nursing facilities (SNFs) and SNFs operated as distinct-part units of acute care hospitals. 

What else to know: The regulations are effective June 21. Compliance with overall ratios is required beginning May 2026.  

Real-Time Exchange of Electronic Health Records is Underway

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What’s happening: Health care and social services organizations in California are required to share electronic health records as of Jan. 31 under the new Data Exchange Framework (DxF).   

What else to know: Assembly Bill 133 (Statutes of 2021) outlined the requirement for health care providers, plans, and other entities to exchange health information for treatment, payment, or health care operations.   

Counties May Delay Expansion of Involuntary Holds

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A new law that could impact hospital emergency departments and inpatient psychiatric capacity can be delayed until 2026 if county boards of supervisors across California adopt a resolution within the next few months.