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CMS Issues Post-Acute Care Payment Proposed Rules

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What’s happening: The Centers for Medicare & Medicaid Services (CMS) issued its proposed payment policies for inpatient rehabilitation facilities (IRFs), skilled-nursing facilities (SNFs), and hospices for federal fiscal year (FFY) 2025.  

What else to know: Comments on the proposed rules are due to CMS by 2 p.m. (PT) on May 28. 

OHCA Board Picking Up Pace, Without Deeper Examination 

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The California Office of Health Care Affordability (OHCA) continues to press forward with analyses, investigations, and policies that do not take into full account the impact of their proposals on patient care. Given that, it’s vital that hospitals make certain that the effect on patients and communities is not lost from the conversation. 

California Goes to Washington

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Earlier this week, nearly 50 of California’s hospital and health system leaders trekked almost 3,000 miles to Washington, D.C. Their purpose: to share with members of Congress the legislative changes they need to successfully meet their mission of care back home.

It was an impressive showing for this year’s joint advocacy program, hosted by your California Hospital Association and the American Hospital Association. I am grateful to have been able to spend time with John Muir Health President & CEO Cal Knight, CHA’s Board Chair, along with Stanford Health Care President and CEO David Entwistle, and Alameda Health System CEO Delvecchio Finley, California’s representatives on AHA’s Board of Trustees.

The Challenge of Our Day

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Across the nation, the headlines are bold. 

From patients going bankrupt due to unexpected medical bills to the news that one in seven patients is burdened by surprise bills.

Daily, these stories keep at the forefront a disparity issue of growing proportion: how to ensure that health care is available, of the highest possible quality, yet affordable for the tens of millions of people who struggle with everyday expenses, let alone the costs of unexpected health needs. Clinical advances, technology, drugs, and more allow us to save lives and perform health care miracles every day, but these accomplishments are increasingly unaffordable for the average person.

The health care affordability conversation is not only dominating the media, but also the Capitol building in Sacramento and the halls of Congress in Washington, D.C.

Hospitals are front and center in this debate.

Alternative Payment Models

Below are a number of resources to help member hospitals understand the regulatory framework as they move toward development and implementation of one or more alternative payment models (APMs). The information includes:

DHCS Submits Hospital Fee Program 9 Fee and Payment Model, Draft Available for Members

What’s happening: On March 28, the Department of Health Care Services (DHCS) submitted a final draft of the Hospital Quality Assurance Fee (HQAF) program 9 fee and payment model to the Centers for Medicare & Medicaid Services (CMS). An internal, members-only version   is available for members to review. 

What else to know: The model should be considered a draft until the state receives official CMS approval, which is expected to take six to nine months. Learn more about the 2025 HQAF program 9 — including a brief history, a summary of changes, and the future landscape of the program — in our members-only webinar on April 7 at 9 a.m. (PT).  

CHA Alert Urges Congress to Reset the IMPACT Act

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On April 28, CHA issued an alert encouraging members to contact their congressional representative and request their support of H.R. 2455, The Resetting the Impact Act (TRIA) of 2021, which seeks to update the Improving Medicare Post-Acute Care Transformation (IMPACT) Act of 2014 by requiring the use of more recent, relevant data in future payment policy development.  

Thanking Our Selfless Volunteers

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“Volunteerism is the voice of the people put into action. These actions shape and mold the present into a future of which we can all be proud.” – Helen Dyer 

This is a time of perseverance and gratitude.  

These are two qualities you can see in any hospital in California — from the gritty, purposeful work of caregivers to the people who can barely find the right words to show appreciation for those who have given them a second chance at life.