BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 39
Author: Skinner (D), et al.
Amended: 8/20/14 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Medi-Cal: designated public hospitals
SOURCE : Author
DIGEST : This bill designates Doctors San Pablo as a
Designated Public Hospital (DPH), thereby allowing the hospital
to access federal Medicaid funds under the states Section 1115
Bridge to Reform Medicaid waiver for which they have not
received federal approval.
Senate Floor Amendments of 8/20/14 delete the prior version of
this bill relating to energy conservation and instead add the
current language.
ANALYSIS :
Existing law:
1.Provides for the Medi-Cal program, which is administered by
the Department of Health Care Services (DHCS), under which
qualified low-income individuals receive health care services.
The Medi-Cal program is, in part, governed and funded by
federal Medicaid Program provisions.
CONTINUED
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2.Establishes the Medi-Cal Hospital/Uninsured Care Demonstration
Project Act (Act), which revises hospital supplemental payment
methodologies under the Medi-Cal program in order to maximize
the use of federal funds consistent with federal Medicaid law
and to stabilize the distribution of funding for hospitals
that provide care to Medi-Cal beneficiaries and uninsured
patients.
3.Requires DHCS to seek a successor demonstration project or
federal waiver of Medicaid law to implement specified
objectives, which may include better care coordination for
seniors, persons with disabilities, and children with special
health care needs. Provides that to the extent the provisions
under the Act do not conflict with the provisions of, or the
Special Terms and Conditions of, this demonstration project,
the provisions of the Act apply.
4.Defines DPHs and requires DPHs to be eligible for specified
payments under the demonstration project.
This bill:
1.Defines Doctors San Pablo as a DPH, thereby changing how the
hospital is reimbursed by Medi-Cal. Defining Doctors San
Pablo as a DPH makes the hospital eligible for cost-based
reimbursement in fee-for-service Medi-Cal for inpatient
services, but shifts the funding source used to draw down the
federal match for these services and disproportionate share
(DSH) payments from the state General Fund to local funds
(Doctors San Pablo is not a DSH hospital now). Clarifies that
defining Doctors San Pablo as a DPH enables it to access
federal funds from the Safety Net Care Pool and the Delivery
System Reform Incentive Pool (non-designated public hospitals
(NDPH) [Doctors Medical Center is an NDPH] are eligible under
state law for these funds but federal approval has not been
granted for NDPH to receive these funds).
2.Appropriates $3 million from the General Fund to the West
Contra Costa Healthcare District for support of the Doctors
Medical Center.
3.Makes legislative findings and declarations that a special law
is necessary because of the unique circumstances regarding
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financing of the West Contra Costa Healthcare District.
4.Takes effect immediately as an urgency statute. States the
facts constituting the necessity for an urgency statue is in
order to prevent the imminent closure of a critical component
of the West Contra Costa County safety net by providing
funding comparable to other safety net hospitals.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
JL:k 8/21/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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