Hospital finance is complicated, and California hospitals operate in a challenging environment. Hospital executives are faced with the task of developing financial strategies that contain costs yet allow for the provision of health care to the state’s large uninsured population.
Governor Brown has officially released his 2014-15 budget proposal. In Medi-Cal the budget proposes to relieve retroactive rate reductions – referred to as the AB 97 cuts – for some health care providers, but not for hospital-based skilled-nursing facilities. The state will forgive the retroactive recoupments for these providers and services: physicians/clinics, certain drugs, dental, and medical transportation. However, these providers’ Medi-Cal rates going forward will still be reduced by 10 percent, as called for in AB 97 of 2011.
“The state has made great progress over the past year in reversing many of the devastating cuts to the Medi-Cal program, but we are disappointed that the elimination of the retroactive ‘clawback’ does not extend to hospital-based skilled-nursing units,” said C. Duane Dauner, CHA president/CEO. “The retroactive collection of monies dating back to 2011 will place a significant financial burden on hospitals that care for the neediest and sickest patients. We call on the Legislature to extend the elimination of the clawback to all providers.”
In opposition to AB 975 (Wieckowski/Bonta), CHA has embarked on a comprehensive public advocacy campaign to increase awareness of the importance of not-for-profit hospitals and the diverse array of community benefit programs they provide throughout California. A new video (below) describes the vital role nonprofit hospitals play in the communities they serve.
AB 975 would establish a “guilty until proven innocent” presumption for hospitals that report an operating margin of more than 10 percent.Under current law, nonprofit hospitals are required to invest their funds int
The state of California has been active creating a brand new marketplace for health care — the California Health Benefit Exchange (CHBE). Health plans have been busy too, filing certification applications, creating products for CHBE and developing networks of providers to support the products. With all this activity, providers and purchasers are asking questions — lots of them. This webinar addresses the latest developments at CHBE and explores your most pressing concerns.