CHA News Article

Rural DP/SNFs to Be Exempted from AB 97 Cuts Going Forward
DHCS announces implementation plan

The Department of Health Care Services (DHCS) announced yesterday that, under its planned implementation of the AB 97 rate reductions, rural distinct-part skilled-nursing facilities (DP/SNFs) will be partially exempted from pending Medi-Cal cuts. The facilities will not face the rate freeze at 2008-09 levels or a looming 10 percent reduction.

CHA President/CEO C. Duane Dauner commended the decision, saying, “The announcement will protect the state’s most vulnerable patients who live in rural areas by sparing these hospitals from previously announced 25 percent or greater cuts, and halting a rate freeze based on 2008-09 payment levels.”  

CHA continues to work with DHCS to address the rate cut for non-rural  DP/SNFs as well as the impact of the clawback, or retroactive recoupment, for all DP/SNF providers. The DHCS announcement is attached.