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Distressed Hospital Fund
The Medi-Cal Hospital/Uninsured Care Demonstration Project Act also established a Distressed Hospital Fund (Welfare and Institutions Code section 14166.23) for contract hospitals that meet all of the following requirements, as determined by CMAC in its discretion:
- 1. Serves a substantial volume of Medi-Cal patients measured either as a percentage of the hospital’s overall volume or by the total volume of Medi-Cal services furnished by the hospital.
- 2. The hospital is a critical component of the Medi-Cal program’s health care delivery system, such that the Medi-Cal health care delivery system would be significantly disrupted if the hospital reduced its Medi-Cal services or no longer participated in the Medi-Cal program.
- 3. The hospital is facing a significant financial hardship that may impair its ability to continue its range of services for the Medi-Cal program.
Payments available for qualifying contract hospitals under the Distressed Hospital Fund are subject to negotiations with the California Medical Assistance Commission. The process to distribute the State Fiscal Year (FY) 2006-07 distressed hospital funds has been concluded and hospitals notified of the results. For an overview of the FY 2007-08 process, please click the links below.
Fiscal Year 2007/08 Distressed Hospital Fund Letter
Fiscal Year 2007/08 Distressed Hospital Fund Certifications and Declarations Form
Fiscal Year 2007/08 Distressed Hospital Fund Contact Information Form

