Reimbursement

California hospitals’ revenue stream is critical to their overall mission of providing care and cures in the communities they serve. While over half of hospitals' revenue, nearly $30 billion a year, is derived from government-funded programs, including Medicare, Medi-Cal, Healthy Families and county indigent programs - Private Insurance revenues are also significant.

Medi-Cal Reductions in State Budget Revise Would Directly Impact Hospitals

CHA issues Budget Watch on May Revise
California Hospital Association picture

The Governor's revisions to the fiscal year 2010-11 state budget proposal include program eliminations as well as spending reductions within the Medi-Cal program that will directly impact California hospitals.

For more details, see the attached CHA Budget Watch.

Palmetto Provides Clarification on 72 hour rule

CHA has sought guidance from the Medicare Administrative Contractor, Palmetto GBA, on the Medicare three-day payment window provision (72 hour rule) of the inpatient prospective payment system.

CMS to Hold Claims Payable Under Physician Fee Schedule for 10 Days in January 2010

Agency holding claims in anticipation of corrective legislation being signed by President Obama

The Centers for Medicare & Medicaid Services (CMS) announced on December 21 that they will be holding all claims payable under the Medicare physician fee schedule (MPFS) for the first ten business days of January (January 1 to 15).  The agency claims that this hold will not result in any delayed payment to providers, and is intended to diminish any disruption caused by the statutorily-

Governor Signs Hospital Fee Appropriations Bill

The Governor signed AB 188 (Jones, D-Sacramento/Alquist, D-Santa Clara/Steinberg, D-Sacramento) on Nov. 5. Co-sponsored by CHA, the bill provides the necessary appropriations for the state to seek federal approval to implement AB 1383 (Jones, D-Sacramento/Alquist, D-Santa Clara). AB 1383 assesses a fee on hospitals for the purpose of securing matching federal funds to make supplemental Medi-Cal payments to hospitals and to provide the state with $320 million in annual funding for children's health care coverage.

Lawsuit Filed on Medi-Cal 340B Changes

The AIDS Healthcare Foundation (AHF) filed a complaint this week against the Department of Health Care Services (DHCS), seeking an injunction to prevent the implementation of the new state law aimed at 340B providers.

CMS Issues Final Rule on Recoupment of Medicare Overpayments

The Centers for Medicare & Medicaid Services (CMS) issued a final rule in the Federal Register this week that implements a provision of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The rule prohibits Medicare from recouping overpayments from a provider that is pursuing an appeal from a Qualified Independent Contractor (QIC).