CA AB2599

Establishes Medi-Cal funding provisions for a new private nonprofit hospital to serve South Los Angeles, replacing services formerly provided by the closed Los Angeles County Martin Luther King Jr.-Harbor Hospital.

Authorizes the new hospital to negotiate selective provider contracts with the California Medical Assistance Commission for inpatient services, with negotiations considering the hospital's projected Medi-Cal costs and reimbursement levels necessary for financial viability.

Provides alternative cost-based reimbursement methodology for inpatient and outpatient Medi-Cal services if the hospital does not enter into a selective provider contract, with supplemental payments available subject to federal approval.

Allows the County of Los Angeles to transfer public funds to the state to support the nonfederal share of supplemental payments, with the state retaining a negotiated portion for the Medi-Cal program based on specified percentages of projected costs.

Implementation is contingent upon obtaining necessary federal approval from the Centers for Medicare and Medicaid Services and confirmation that federal financial participation is available.