Inpatient Contract & Monitoring
Hospital Contracts
The Hospital Contracts Unit is responsible for administration of the Selective Provider Contracting Program (SPCP) The SPCP operates under the authority of the federal section 1115 Medi-Cal Hospital/Uninsured Care Demonstration (11-W-00193/9) (Demonstration), of the Social Security Act. The Demonstration is effective September 1, 2005 through August 31, 2010.
The SPCP allows California to selectively contract with private, and certain public hospitals to provide inpatient services to Medi-Cal beneficiaries on a negotiated rate basis. The California Medical Assistance Commission is responsible for negotiating the reimbursement rates with the hospitals, and supplemental payments to specified participating hospitals to help cover uncompensated Medi-Cal costs and to address unique, unexpected and/or temporary financial needs of individual hospitals. There are currently 204 SPCP contract hospitals.
In addition to contract administration, the HCU is responsible for processing several supplemental payments related to the SPCP, reporting payment activity on a quarterly and annual basis to the federal Centers for Medicare & Medical Services, monitoring the expenditures to the state funds supporting these payments, and preparing annual budget estimates related to these funds. Supplemental payment programs and funds include the Construction/Renovation Reimbursement Program (SB 1732); Private Hospital Supplemental Fund; Distressed Hospital Fund; and the Nondesignated Public Hospital Supplemental Fund.
The HCU is also responsible for developing and monitoring interagency agreements with the Department of Health Care Services and other state agencies to secure federal reimbursement for services provided to Medi-Cal beneficiaries receiving health-related services from programs in those agencies.
Contact Information
Hospital Contracts Unit
Department of Health Care Services
1501 Capitol Avenue, MS 4504
P.O. Box 997436
Sacramento, CA 95899-7419
Phone: (916) 552-9113
Fax: (916) 552-9109