General Information

CMS Approves SPAs for Hospital Fee Program
Final approval will be received when CMS reviews managed care rates

The Centers for Medicare & Medicaid Services (CMS) has approved the State Plan Amendments (SPAs) related to the hospital fee program. The SPA approval enables CMS to release federal funding for the fee-for-service payments in the hospital fee program. CMS also approved the waiver for the hospital fee structure. Final approval will be received when CMS reviews the managed care rates sometime later this month.

The first payment under the hospital fee program was due to the state October 8. This is the first of four fee installments that hospitals must pay to maximize new federal funds. The total fee payments will be $3.08 billion over the next three months. For the hospital fee program to be successful, hospitals must pay the fee in full and on time. For payment instructions, see October 6 CHA memorandum.

Hospitals should expect the first round of new supplemental Medi-Cal payments October 25. The amount of the supplemental payment will depend on the level of fees received from all hospitals. The hospital fee program is expected to generate a total of $2.65 billion in net new funds for hospitals.