CMS Issues Final Approvals on 6-Month Hospital Fee

The Centers for Medicare & Medicaid Services (CMS) has approved the final component of the six-month hospital fee, which includes payments to Medi-Cal managed care health plans using hospital fee funds and intergovernmental transfers from public hospitals.  The six-month fee program covers the period from January 1, 2011, through June 30, 2011.

Funds from intergovernmental transfers and hospital fee dollars will be used to draw down federal matching funds to increase capitation payments to health plans. By law, health plans will have thirty days to pass through the increased capitation payments to hospitals once such funds are received. In mid-January, CHA will distribute hospital-specific summaries showing how much each hospital can expect from each health plan.  The total from each of the health plans will match the originally estimated managed care supplemental payments.  CHA anticipates hospitals will receive these funds by mid-March.

Designated public and nondesignated public hospitals will need to make their intergovernmental transfers to the Department of Health Care Services by January 12.  We will provide details regarding these transfers next week.

For more information on CMS approvals, please view attachments.