CHA News Article

Proposal Would Raise Hospital Licensing Fees 5 Percent for 2018-19
Los Angeles County hospitals subject to supplemental facility fee

This week, the California Department of Public Health (CDPH) released its 2018 Fee Report, which proposes to increase hospital fees by 5 percent (from $515.04 to $540.79 per licensed bed) and add a supplemental facility fee of $50.53 per bed for hospitals in Los Angeles County. 

Historically, the department has contracted with Los Angeles County to use county employees, rather than state workers, to perform facility licensing and certification duties for facilities in that area. The budget proposal asserts that the cost of doing business is higher there than in other parts of the state, and that licensing fees are commensurate with Los Angeles County’s costs to complete the workload. This increase coincides with a proposal to extend the current Los Angeles County contract for one year, and then negotiate a three-year contract beginning in July 2019. The proposal includes a “pay-for-performance” program.

CHA is analyzing the proposal, but generally supports using performance metrics for improvement across the entire state, rather than in only one jurisdiction. 

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