CHA News Article

Historic Agreement Creates Hospital Fee Program, Eliminates DP/SNF Cuts

CHA announced today in the attached media statement that an historic agreement has been reached to eliminate future Medi-Cal payment cuts to hospital-based skilled-nursing facilities, while also bringing in more than $10 billion in new federal Medicaid funds to California hospitals and providing $2.4 billion in additional revenue to the state General Fund. CHA-sponsored SB 239 (Hernandez/Steinberg) was approved unanimously today in the Assembly Health Committee and is expected to pass both the Assembly and Senate by the end of this week. The bill would create a new Medi-Cal hospital fee program, strengthening the ability of California hospitals to respond to increased demands from the federal Affordable Care Act. As part of the agreement between the Administration, legislative leaders and CHA, SB 239 also would eliminate future Medi-Cal payment cuts to non-rural hospital-based skilled-nursing facilities and lift a rate freeze that resulted in significant underpayments for hospital-based skilled-nursing care.