​​Invitation for Bid # 19-96006

Disproportionate Share Hospital Audit

The Department of Health Care Services (DHCS), Disproportionate Share Hospital (DSH) Financing, is soliciting bids from firms that are able to conduct an annual audit for California's DSH Program. Bids must address all of the services described in the Invitation for Bid (IFB) section entitled, “Scope of Work”.

The DSH Program intends to make a single contract award to the most responsive and responsible firm offering the lowest bid. This procurement is open to all eligible firms and/or individuals that meet the qualification requirements. As of 2003, Congress has required the State to submit for each hospital annual reports and separately, to submit for each hospital an annual independent certified audit of DSH payments (P.L. 108-173). The annual reports for each DSH hospital must include the following: the hospital specific DSH limit, the Medicaid inpatient utilization rate, the low-income utilization rate, the State-defined DSH qualification criteria, and all Medicaid payments (including fee-for-service, managed care, and non-DSH supplemental payments (§1923(j) of the Social Security Act and 42, Code of Federal Regulations (CFR), §447.299). The annual independent audits must certify that each DSH hospital qualifies for payment, that DSH payments do not exceed allowable uncompensated care costs, and that the hospital accurately reported payments, spending and utilization.

On December 19, 2008, the Centers for Medicare & Medicaid Services (CMS) published a final rule (42 CFR Parts 447 and 455) specifying the elements of the required DSH report and the verifications required for the audit.

Pursuant to the Social Security Act and Federal Regulations, the Contractor will annually evaluate and determine:

1. Whether each DSH hospital qualifies for payment.
2. Whether DSH payments do/do not exceed allowable uncompensated care costs.
3. Whether each hospital accurately reported payments, spending and utilization.

The Contractor will provide DHCS with a report documenting the above on an annual basis.

Questions regarding this IFB should be submitted via email to:  George.Marley@dhcs.ca.gov

Procurement Status

Notice of Intent to Award Released - Click here to view the NOIA document​


You may view and/or download the RFP from the Cal eProcure / Fi$Cal website using the instructions referenced below.
​Date Rel​easedEventComment​
​4/2/2019​Notice of Intent to Award Released​​Notice of Intent to Award Released - Click here to view the NOIA document​
2/26/2019​Administrative Bulletin 1​Administrative Bulletin 1 with Question and Answer Response​ released


​IFB Release

​The Office of Medi-Cal Procurement announces the release of Invitation for Bid # 19-96006 for the Disproportionate Share Hospital (DSH) Financing program.

  This IFB has been officially released to the California State Contracts Register (CSCR) using the Cal eProcure/Fi$Cal website.  Please use the instructions provided below to navigate to, and download, the IFB.  All subsequent document releases for this IFB will also be made to the Cal eProcure/Fi$Cal website.  As noted on the OMCP home page, it is highly recommended that all vendors wishing to contract  with the State of California complete registration for the Cal eProcure/Fi$Cal system as it is the official location for RFP/IFB releases.  Registration will also allow vendors to receive automatic notifications when contracting opportunities are posted for business categories of their choosing.  If selected as a contractor, this system will be used for payments covered by the contract.

IFB View / Download Instructions

Disproportionate Share Hospital Audit Cal eProcure/Fi$Cal Event Code: 19-96006

Step 1:  Visit the Cal eProcure website
Step 2:  Select "View Event Package"
Step 3:  Select "View" next to each element of the procurement package that you wish to download
Step 4:  Select "Download Attachment" that appears at the top of the webpage to begin your download

NOTE: Some links on this page are documents in Adobe Acrobat Portable Document Format (PDF). PDF documents require Adobe Reader. If you need to install or upgrade to the latest version, visit the “Download Free Readers” webpage.
For website assistance, please contact the Office of Medi-Cal Procurement at (916) 552-8006 or by email at omcprfp0@dhcs.ca.gov
Last modified date: 1/30/2020 12:30 PM