California Hospital Fee Extended in Governor's 2013 Budget Plan

California Gov. Jerry Brown (D) released his 2013-14 budget (pdf), and several adjustments will impact state hospitals.

Gov. Brown has extended California's Hospital Quality Assurance Fee through Dec. 31, 2013. The fee, which was first authorized in 2011, imposes a fee on certain general acute-care hospitals in the state, which are used to fund supplemental payments for hospitals that treat more indigent patients and to offset the costs of healthcare coverage for children.

California expects the fee will save $310 million from its general fund next year. The budget also proposed to extend the hospital fee until 2016, although there has been no indication if that will come to fruition.

Gov. Brown also indicated that the state, as expected, will expand its Medicaid program under the Patient Protection and Affordable Care Act. The state set aside $350 million expansion-related costs this year "until a more refined estimate can be developed," according to the budget.

Overall, California's Department of Health Care Services plans to allot $60.9 billion to its Medicaid program in 2013-14, representing 58 percent of the state's entire health budget.

More Articles on California Hospital Finances:

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California Hospitals Improved Profitability in 2010

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