CA SB1423

State Department of Health Care Services must convene a Rural Hospital Technical Advisory Group during 2025, with representatives from rural hospitals, managed care plans, hospital associations, rural organizations, and other relevant stakeholders.

Advisory group shall meet at least bimonthly throughout 2025 to analyze whether small, rural, and critical access hospitals can remain financially viable under current Medi-Cal reimbursement methods.

Advisory group will recommend changes to Medi-Cal reimbursement methodologies to ensure rural communities have adequate access to covered services and hospitals maintain financial viability.

Department must identify key contributors to financial challenges facing small, rural, and critical access hospitals beyond Medi-Cal reimbursement rates.

Department must submit a comprehensive report to the Legislature by March 31, 2026, including recommendations for successor reimbursement methodologies, necessary federal approvals, and statutory changes required to implement recommendations.