Right Column
Special Programs
The Medi-Cal Hospital/Uninsured Care Demonstration Project Act (Senate Bill 1100, Chapter 560, Statutes of 2005) added Article 5.2, Section 14166, et. seq., to the Welfare and Institutions Code, and changed how some California hospitals are reimbursed under the Medi-Cal program.
For public (the University of California and county) hospitals, the Act changed the primary Medi-Cal reimbursement method to certified public expenditures (CPE). The Act also eliminated the use of most intergovernmental transfers and established other funding mechanisms. The California Medical Assistance Commission no longer negotiates inpatient rates with the University of California and county hospitals for the hospital inpatient services they provide under the Medi-Cal program. Instead, the Department of Health Care Services will determine Medi-Cal reimbursement levels for these hospitals as specified in the Act.
For private and nondesignated public, or district, hospitals, the Act continues the Selective Provider Contracting Program (SPCP). The California Medical Assistance Commission will continue to negotiate inpatient rates with private and district hospitals for the hospital inpatient services they provide under the Medi-Cal program.
The Act also created new hospital supplemental payment programs, and restructured how supplemental payment programs are funded.