The Los Angeles County Board of Supervisors approved a reimbursement rate reduction for the Physician Services for Indigents Program (PSIP).

Approval of the recommendation will enable a reduction of the reimbursement rate for outstanding FY 2010-11 claims to 12 percent of the Official County Fee Schedule (OCFS) and will establish the initial reimbursement rate at 14 percent of the OCFS effective July 1, 2011 service dates for non-county physician emergency services claims.

The estimated payment for the outstanding claims for FY 2010-11 is $4.2 million; the total payment for all FY 2011-12 claims is $20.6 million funded by SB 612 (Maddy), SB 1773, Measure B and the South LA Preservation Fund revenues.

This week, Supervisor Don Knabe introduced a further motion regarding PSIP, calling for the remainder of the Auditor Controllers’ recommendations on an audit of PSIP released in March 2011 to be implemented. This motion also authorizes the Department of Health Services director to adjust future rates without Board of Supervisor authorization.