Due to a severe cash flow shortage, the State of California will implement short-term payment delays to Medi-Cal institutional providers effective March 1, 2012 (the first warrant release date of March). Reimbursement for Medi-Cal institutional providers, except for clinics, designated public hospitals, and Local Educational Agencies (LEAs), will be held based on the following schedule:
Payments scheduled for a warrant release date of March 1, 2012 (Electronic Funds Transfer [EFT] date of March 5, 2012) will be held until the warrant release date of March 15, 2012 (EFT date of March 19, 2012) and will be paid along with all services normally scheduled for payment that week.
Payments scheduled for a warrant release date of March 8, 2012 (EFT date of March 12, 2012) will be held until the warrant release date of March 22, 2012 (EFT date of March 26, 2012) and will be paid along with all services normally scheduled for payment that week.
Payments to Medi-Cal non-institutional providers will not be held. Please note that the list below is limited to providers whose claims are processed by the Medi-Cal Fiscal Intermediary (FI).
To ensure implementation of this proposal, the Department of Health Care Services (DHCS) will hold reimbursement to the following Medi-Cal institutional providers:
Medi-Cal Institutional Providers, Adult Day Health Care Centers (ADHC), Assistive Device and Sick Room Supply Dealers , Blood Banks, Clinical Laboratories, Fabricating Optical Laboratory/Prison Industry Authority (PIA), Home Health Agencies (HHA), Community Hospital Outpatient Departments, Community Hospital Inpatient (with the exception of designated public hospitals), Long-Term Care (LTC) facilities, Pediatric Subacute Care – LTC, Ground Medical Transportation, Genetic Disease Testing, Air Ambulance Transportation Services, Certified Hospice Service, Home and Community Based Services (HCBS) Nursing Facilities, Mental Health Inpatient, County Hospital Inpatient (with the exception of designated public hospitals), County Hospital Outpatient, Multipurpose Senior Services Program (MSSP), esidential Care Facilities for the Elderly.
The following institutional providers are exempt from the temporary payment withhold:
Indian Health Clinics, Rural Health Clinics, Federally Qualified Health Centers, Free Clinics, Community Clinics, Chronic Dialysis Clinics, Multi-Specialty Clinics, Surgical Clinics, Exempt from Licensure Clinics, Rehabilitation Clinics, County Clinics Not Associated with a Hospital, Birthing Centers – Primary Care Clinics, Clinic Otherwise Undesignated, Alternate Birthing, Centers – Specialty Clinics, Expanded Access to Primary Care Clinics, Designated Public Hospitals, Local Education Agencies.
DHCS understands that this difficult decision is painful for our valued provider partners, but Medi-Cal, as the state’s second largest General Fund expenditure, must be part of the state’s budget solution. ■