The Department of Health Services (DHS) has informed the Los Angeles County Board of Supervisors that, due to the FY 2009-2010 state budget funding reductions to the Physician Services for Indigents Program (PSIP), the continued increase in claim volume, and a slight increase in payment per claim, DHS is proposing a reduction in the PSIP reimbursement rate from 18 percent to 12 percent for all outstanding claims FY 2010-2011, and a reduction in the rate for FY 2011-2012 to 14 percent of the Official County Fee Schedule. 

DHS has stopped payment of FY 2010-2011 claims and will resume payment when the Board approves the reduced rate.

PSIP has historically been funded by a combination of EMS/Maddy Funds, Los Angeles County Measure B property assessment funds and EMSA funds.

This reduced reimbursement rate could result in PSIP ER reimbursement rates falling below 50 percent of Medi-Cal payments, which will exacerbate an already challenging situation by limiting the availability of physicians willing to be on-call to a private ER.

The Los Angeles County Board of Supervisors will take action on this matter in the coming weeks.