CHA News Article

CHA Issues Draft Comments on Medi-Cal DRG SPA

CHA has released draft comments on the California Department of Healthcare Services (DHCS) State Plan Amendment (SPA) regarding changes to the Medi-Cal reimbursement methodology for hospital inpatient services. The SPA outlines policy decisions regarding implementation of the All Patient Refined Diagnosis Related Group (APR-DRG) payment methodology, scheduled to take effect July 1. While CHA supports an acuity-based payment system, we have significant concerns with the 2009 dataset being used to calculate hospital base rates. CHA suggests an alternate implementation strategy that requires DHCS to collect six months of current data to validate and update its analysis. CHA encourages members to use the attached draft comment letter to inform their own comments. Comments are due Monday, May 20, and can be submitted to the address listed on the attached letter. A copy of the SPA is also attached.