BILL NUMBER: AB 574	CHAPTERED  10/10/01

	CHAPTER  649
	FILED WITH SECRETARY OF STATE  OCTOBER 10, 2001
	APPROVED BY GOVERNOR  OCTOBER 9, 2001
	PASSED THE SENATE  SEPTEMBER 13, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 13, 2001
	AMENDED IN SENATE  SEPTEMBER 12, 2001
	AMENDED IN SENATE  SEPTEMBER 7, 2001
	AMENDED IN ASSEMBLY  JUNE 4, 2001
	AMENDED IN ASSEMBLY  APRIL 18, 2001

INTRODUCED BY   Assembly Members Salinas and Ashburn
   (Coauthor:  Assembly Member Florez)
   (Coauthors:  Senators Costa and McPherson)

                        FEBRUARY 21, 2001

   An act to add Sections 14176.5 and 14176.6 to the Welfare and
Institutions Code, relating to Medi-Cal.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 574, Salinas.  Medi-Cal:  overpayment forgiveness.
   Existing law provides for the Medi-Cal program, administered by
the State Department of Health Services, under which qualified
low-income persons are provided with health care services.
   Under existing law, the department audits providers to determine
whether any overpayments have been made for Medi-Cal services and,
subject to an appeals process, the department is empowered to collect
overpayments determined to have been made pursuant to these audits.

   This bill would provide that whenever, pursuant to an audit
conducted by the department, it has been determined that an
overpayment for Medi-Cal services has been made to certain categories
of hospitals for services rendered from January 1, 1992, to December
31, 1997, the department may forgive a hospital the debt arising
from the overpayment and interest.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) There is a demonstrated critical need in the state for
traditional safety net providers to continue to provide accessible
health care services to low-income, indigent, and medically
underserved communities.
   (b) Too many hospitals in these communities have already suffered
closure.
   (c) The loss of yet another provider is not in the best interest
of the state.
   (d) It is necessary, and in the best interest of the public, to
give to the State Department of Health Services more authority to
work with these hospitals and clinics regarding debts resulting from
Medi-Cal overpayments in an attempt to prevent the further loss of
vital services.
  SEC. 2.  Section 14176.5 is added to the Welfare and Institutions
Code, to read:
   14176.5.  Whenever it has been determined, pursuant to an audit
conducted by the department, that an overpayment for Medi-Cal
services has been made to a hospital for services rendered from
January 1, 1992, to December 31, 1997, the department may forgive all
or part of the debt arising from the overpayment, and interest, if
the hospital is all of the following:
   (a) A disproportionate share hospital, as defined in Section
14105.98.
   (b) Located in Kern County or Monterey County.
   (c) A nonprofit hospital, as defined in Section 127050 of the
Health and Safety Code, or not affiliated with a hospital system.