Prior to the end of California's legislative session on Tuesday, state lawmakers passed two bills that would affect the hospital industry by creating a framework for a hospital fee and establishing regulations on hospital operators and health care districts, Payers & Providers reports.
Both bills now go to Gov. Arnold Schwarzenegger (R).
Structure for Hospital Fee
On Monday, the Assembly unanimously passed AB 1653, by Assembly member Dave Jones (D-Sacramento). The Senate previously approved the measure.
The legislation would create a structure for a new fee on hospitals that would help draw down federal matching funds for Medi-Cal, California's Medicaid program. CMS must provide final approval for the plan.
After drawing down the federal Medi-Cal funds, the state would allocate about $2.6 billion back to hospitals and $560 million to boost children's health care coverage.
Regulations on Hospital Operators, Districts
Lawmakers also gave final approval to SB 1240, by Sen. Ellen Corbett (D-San Leandro), which would:
- Require annual audits of all leases between private hospital operators and hospital districts;
- Limit how district assets could be spent; and
- Prohibit the use of operating losses as credits when a district hospital is being purchased (Payers & Providers, 9/2).
Lawmakers developed SB 1240 after complaints arose about how not-for-profit organization Sutter Health managed hospitals in Greenbrae's Marin Healthcare District and Castro Valley's Eden Township Healthcare District (California Healthline, 8/12). The California Nurses Association sponsored the bill.
Outlook for Legislation
Although a spokesperson for Schwarzenegger did not respond to questions about the governor's position on the two bills, Schwarzenegger is expected to sign AB 1653 into law (Payers & Providers, 9/2).