AB 1653 Summary

• Modifies supplemental payment formulas for private hospitals, designated public hospitals, and nondesignated public hospitals under Medi-Cal for the 2008-09, 2009-10, and 2010-11 federal fiscal years

• Expands the definition of "nondesignated public hospital" to include tax-exempt nonprofit hospitals operating facilities owned by local health care districts where the district is the nonprofit's sole corporate member

• Requires supplemental and capitation payments to hospitals to be made in 7 installments with deadlines between September and December 2010, with all amounts paid by December 30, 2010

• Changes enhanced payments to managed health care plans and mental health plans to "increased capitation payments" and requires managed health care plans to expend 100% of increased capitation payments on hospital services

• Imposes a quality assurance fee on general acute care hospitals (excluding exempt facilities and converted hospitals) with revenues deposited in the Hospital Quality Assurance Revenue Fund to support hospital payments and children's health coverage