OHCA, established in 2022, will profoundly shape health care in California. Its legislated goals are to slow health care spending growth, promote high-value system performance, and assess market consolidation. CHA is actively engaged in the implementation process, advocating to improve affordability for patients while ensuring hospitals are able to make much-needed investments to improve access, quality, and equity.
Latest News
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OHCA Board States Positions on the Spending Target, Without Taking a Vote
CHA News -
As OHCA Health Care Spending Target Nears, Questions Must Be Addressed
CEO Message, CHA News -
CHA Urges OHCA to Adopt One-Year, Modified Target
CHA News -
CHA’s Advocacy Continues as OHCA Moves Toward Final Growth Target
CHA News
Advocacy
In addition to in-person advocacy at OHCA meetings, CHA has submitted the following comment letters.
OHCA must plan for the health care system Californians need and deserve. California’s health care system provides world-leading, life-saving care to millions of patients every year. A poorly considered, hastily developed spending growth target would have dire consequences for millions.”
CHA letter on spending target proposal – March 8, 2024
“OHCA risks developing a methodology that fails to appropriately capture the full realities and complexities of how hospitals fund the care they provide to California’s patients. “
CHA letter to OHCA Board Chair Dr. Mark Ghaly – February 22, 2024
Previous Letters
- March 8, 2024: CHA Comments on Proposed Statewide Health Care Spending Target Recommendations to the Board
- February 22, 2024: CHA Comments on the January 2024 Health Care Affordability Board and Advisory Committee Meetings
- January 18, 2024: CHA Urges Serious Scrutiny of the Proposed Spending Target and Significant Changes to Avoid Negative Consequences
- December 13, 2023: CHA Comments on the October 24, 2023 Health Care Affordability Board Meeting and November 30, 2023 Health Care Advisory Committee Meeting
- October 18, 2023: CHA Comments on the September 2023 OHCA Board and Advisory Committee Meetings
- September 12, 2023: CHA Comments on the August 2023 Health Care Affordability Board Meeting | Cost and market impact review draft regulations, patient attribution methodology, spending target considerations
- August 14, 2023: CHA Comments on the June 2023 Health Care Affordability Board and Advisory Committee Meetings | Principles for the cost and market impact review process, clinical risk adjustment, data-driven decision making for the spending targets, and data transparency
- June 12, 2023: CHA Comments on the May 23, 2023, Health Care Affordability Board Meeting | Addresses advisory committee appointments, concerns around payer-reported data, spending target adjustments, risk adjustment
- February 26, 2024: Proposed Emergency Regulatory Action – Health Care Spending Targets; Total Health Care Expenditures (THCE) Data Collection
- December 11, 2023: CHA Comments on Proposed Emergency Regulatory Action – Promotion of Competitive Health Care Markets; Health Care Affordability: Cost and Market Impact Reviews
- December 1, 2023: CHA Comments on the Oct. 20, 2023 Version of the Total Health Care Expenditures Data Collection Draft Regulations
- October 17, 2023: CHA Comments on the Revised Draft “Material Change Transactions and Pre-Transaction Review” Regulations
- August 31, 2023: CHA Comments on the Draft “Material Change Transactions and Pre-Transaction Review” Regulations | Regulatory letter on version one of the cost and market impact review draft regulations
Resources
Senate Bill 184, part of the 2022-23 state budget package, established the Office of Health Care Affordability within the Department of Health Care Access and Information (HCAI). The office’s objectives and responsibilities are to:
Jurisdiction. The office’s authority extends to payers, such as health plans and public health care coverage programs; providers, including hospitals and physician groups; and fully-integrated delivery systems.
Governance. OHCA is housed within the Department of Health Care Access and Information and is overseen by an eight-member board with input from an advisory committee.
See OHCA’s website for links to public meetings, laws and regulations, and additional information.
Implementation of the office will occur gradually over the next several years:
The office’s work coincides with a period of unparalleled financial distress for hospitals. Rising costs, — including expenses for workforce and other needs, along with state-mandated capital improvement projects — mean that hundreds of California’s hospitals are operating with negative margins, losing money every day to care for patients.
Education
This content is restricted to members.