CHA News

Update on Hospital Fee Program CY 2021 Passthrough

For CFOs

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.