Hospital Quality Assurance Fee Program

QAF created by AB 1383

AB 1383, amended by AB 1653 and SB 208, set up a program that imposes a Quality Assurance Fee (QAF) on certain general acute care hospitals in order to make supplemental and grant payments and increased capitation payments to hospitals up to the aggregate upper payment limit (UPL) for the period of April 1, 2009 - December 31, 2010.

Welfare and Institutions Code Section 14167.31 (c)(1) requires the department to provide notice on this website of the date that the state received notice of federal approval and the fee percentage or percentages for each subject federal fiscal year.

Federal Approval

Final federal approval for fee collection was received September 22, 2010.

Final federal approval for fee-for-service payments was received October 8, 2010.

Final federal approval for managed care payments were received December 22, 2010 and January 18, 2011.

Fee Percentage

Due to the implementation date of the QAF, fee collection and payments occurred on a cyclical basis rather than on a quarterly basis as originally planned. Therefore, the fee percentage was calculated for the entire program period. As of January 1, 2011, the fee percentage for the entire program period was 94.99%.  

QAF created by SB 90