Cal­i­for­nia to get less fed­eral un­com­pen­sated care funds

Modern Healthcare - - REGIONAL NEWS - —Vir­gil Dick­son

The CMS has ten­ta­tively ap­proved Cal­i­for­nia’s multi­bil­lion-dol­lar Med­i­caid waiver but will sub­stan­tially cur­tail its sub­si­dies for un­com­pen­sated care.

Cal­i­for­nia of­fi­cials an­nounced an agree­ment on a $6.2 bil­lion waiver that would sus­tain the state’s ef­forts to re­form its Med­i­caid pro­gram. The waiver would in­clude $3.3 bil­lion to help pub­lic safety net hos­pi­tals main­tain and launch de­liv­ery-sys­tem re­form ini­tia­tives, in­clud­ing in­fras­truc­ture de­vel­op­ment, sys­tem re­design and im­prove­ments tar­get­ing clin­i­cal out­comes and pop­u­la­tion health.

Providers wel­comed the Obama ad­min­is­tra­tion’s sup­port for those ini­tia­tives, but they’re not happy about the lim­ited in­clu­sion of fed­eral fund­ing for un­com­pen­sated care. The CMS agreed to ex­tend the safety net pool for only a year. The pool also would be re­duced to $236 mil­lion in 2016 from $400 mil­lion a year un­der the pre­vi­ous waiver.

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