CHA News

Update on Hospital Fee Program CY 2021 Passthrough

For CFOs

This post has been archived and contains information that may be out of date.

Traditionally, the Department of Health Care Services (DHCS) processes Medi-Cal managed care supplemental payments at or near the federal funding claiming limit. This lengthy timeline was factored into the original 2019-21 Hospital Fee Program schedules that CHA distributed to hospitals in April 2020.

However, due to the COVID-19 pandemic, DHCS has once again agreed to expedite the Medi-Cal managed care passthrough payment cycles for hospitals. Specifically, DHCS will expedite the calendar year 2021 managed care passthrough cycle (noted as MC Passthrough Cycle 2 in the CHA schedules) — instead of waiting to process these payments in 2023 as originally scheduled. 

Below are the new payment details: 

  • Invoices will be distributed the first week of December 2021. 
  • Fees will be due to DHCS on Dec. 22. 
  • Managed care payments will process in January 2022 for the plans. 
  • Plan payments to hospitals are expected by the end of February 2022.