Media Statement

CHA Commends State’s Decision to Exempt Rural Hospitals from Some Medi-Cal Cuts
Rural Hospital-Based Skilled-Nursing Facilities Get Some Relief; Issues Remain for Urban Hospitals

The California Hospital Association (CHA) commends the decision by the California Department of Health Care Services (DHCS) and HHS Secretary Diana Dooley to partially exempt rural hospital-based skilled-nursing facilities from looming Medi-Cal payment cuts. 

This 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.  Both cuts collectively represented a debilitating financial hit on facilities that, in many cases, provide the only source of health care in their communities.