The Department of Health Services (DHS) has proposed a Physician Services for Indigents Program (PSIP) ER reimbursement rate reduction to 9 percent from the current 14 percent of the Official County Fee Schedule based on a projected shortfall in state funding and increased claim volume. PSIP provides reimbursement to the estimated 5,569 private physicians who provide emergency, obstetric and pediatric services to eligible indigent patients.

DHS believes this reduction is necessary to ensure that some payment is made on all submitted claims. Unlike previous cuts, DHS holds delegated authority to institute PSIP cuts without a vote by the Board of Supervisors.

HASC provided comment at a special EMS Agency public hearing this week regarding the need for the County to identify a solution to a program that’s been cut by 18 percent since 2008. Other providers commented on the County’s obligation to support a program that serves the indigent population. Providers also mentioned that reimbursement cuts have started to affect physician recruitment in communities that are already struggling with access. This environment then has a ripple effect on the entire health care delivery system.

Comments received will be compiled and included in a report for presentation to DHS. If implemented, this rate reduction will be effective for fiscal year FY 2012-13 (July 2012 to June 2013) claims.

Contact: Jaime Garcia
(213) 538-0702, jgarcia@hasc.org