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John Umphress

John Umphress has spent more than two decades researching and writing about public health policy and other topics within the public policy arena, covering advocacy organizations, state and local government agencies and the Texas Legislature.

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Budget Impasse Could Stop Medi-Cal Payments to Some Providers

Posted Administrator Account on 8/22/2010
 

Budget Impasse Could Stop Medi-Cal Payments to Some Providers

August 22, 2010

Health centers and community clinics in California will likely stop receiving reimbursements from the Medi-Cal program this week unless the state adopts a budget.

Hospitals and nursing homes, however, would continue to receive payments from the state.

While California’s fiscal year began on June 1, the state has operated without an approved budget due to a legislative impasse. Since then, centers and clinics have been reimbursed from $2 billion held in the Medical Providers Interim Payment Fund.

Those funds are now almost gone.

More than a thousand no-cost clinics, home health agencies and adult day centers would be subject to the suspension of payments.   For some clinics, Medi-Cal funds account for as much as 80 percent of their total revenue.

Nursing homes and hospitals will avoid the same fate due to provisions in state law. They are also guaranteed payments under ARRA, the federal stimulus legislation. 
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