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San Francisco Marin Medical Society Blog

California announces short-term payment delays for Medi-Cal institutional providers



The state of California announced that it will institute short-term payment delays to Medi-Cal institutional providers due to a severe cash flow shortage. Implementation of the delays is effective March 1, 2012 (the first check release date of March). Reimbursement to Medi-Cal institutional providers, except for clinics, designated public hospitals and local educational agencies, will be held per the schedule below:

  • Payments scheduled for March 1 [electronic funds transfer (EFT) date of March 5] will be held until March 15 (EFT date of March 19), and will be paid along with all services normally scheduled for payment that week.
  • Payments scheduled for March 8 (EFT date of March 12) will be held until March 22 (EFT date of March 26), 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 ACS, the Medi-Cal fiscal intermediary.
To ensure implementation of this proposal, the Department of Health Care Services (DHCS) will hold reimbursement to the following Medi-Cal institutional providers:
  • Adult Day Health Care Centers
  • Assistive Device and Sick Room Supply Dealers
  • Blood Banks
  • Clinical Laboratories
  • Fabricating Optical Laboratory/Prison Industry Authority
  • Home Health Agencies
  • 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 per Assembly Bill 4249
  • Home and Community Based Services Nursing Facilities
  • Mental Health Inpatient
  • County Hospital Inpatient (with the exception of designated public hospitals)
  • County Hospital Outpatient
  • Multipurpose Senior Services Program
  • Residential 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 acknowledges that this difficult decision is painful for providers. SFMS/CMA is working with DHCS to mitigate the impact of this action on physicians.


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