CHA News Article

DHCS Announces Hospital Per Diem Rates Under DRG Reimbursement
Administrative level 2 and rehab services rates now available

The California Department of Health Care Services (DHCS) has announced the per diem rates for administrative level 2 and rehabilitation services, which are scheduled to go into effect under the new All Patient Refined Diagnosis Related Group (APR-DRG) reimbursement methodology effective July 1. The statewide rehabilitation rates were separately calculated for pediatric ($1,842) and adult ($1,032) hospitals, and then adjusted by the Medicare wage index. For hospitals that provided services to both an adult and pediatric population, a specific per diem was calculated to blend the rates. Administrative level 2 services will be reimbursed at separate pediatric ($895.60) and adult ($896.67) rates. However, hospitals with an established subacute rate that is lower will continue to receive their facility-specific rate. More details about the per diem rates, billing codes and definition of covered services are available from DHCS at