Overview

What was voluntary is now mandatory.

In September 2006, Governor Arnold Schwarzenegger signed AB 774, the Charity Care and Discount Payment Law. This legislation requires every general acute-care hospital, psychiatric acute-care hospital and specialty hospital to make the public aware of charity care, payment discounts and government-sponsored health coverage programs. The statute also calls for standardization of hospital billing and collections procedures.

In addition, hospitals are now required by law to submit charity care and discount payment policies and procedures bi-annually to the Office of Statewide Health Planning and Development (OSHPD). For most hospitals, this requirement is a condition of licensure.

CHA developed this easy-to-use handbook to help front-line managers understand, implement, and comply with the new law. The manual outlines a process for modifying business practices, training staff, and monitoring and evaluating compliance. Several helpful checklists are included.

Written By:
George L. Koortbojian, Clark, Koortbojian & Associates, Inc.

Legal Review By:
Lloyd A. Bookman, Hooper, Lundy & Bookman, PC

61 pages (1st edition, February 2008)

Content

• Requirements of the Law
• Avoiding Common Obstacles
• Hospital Policy and Procedure Review
• Hospital Practice Review
• Accounting for and Reporting Charity Care
• Staff Education and Training
• Program Monitoring and Evaluation
• Compliance Checklist
• Key Websites