HASC filed a formal protest this week on behalf of Orange County hospitals against County Health Care Agency plans to utilize funding from the MSI Hospital Pool to pay for CMS-mandated increases in physician payments. Citing prior diversions of $20 million earlier in the year for HIV-related pharmacy costs and more than $200 million in actual-cost losses they will incur for unreimbursed services, hospitals asked the County to reconsider and reverse what would be a “grossly inequitable decision.”

The HASC letter also questioned the County’s authority to divert the funds under the terms of their agreements, questioned staff’s ability to take these actions without Board of Supervisors approval, and suggested that reductions of this magnitude to hospital funding should have triggered the formal notification processes outlined in the agreement.

In recent years, the Board of Supervisors has consistently taken modest steps to prevent hospital payments from falling to their current levels – 13.5% of cost. HASC’s letter observed that the redirection of funding formally approved for hospital services essentially nullifies the Board of Supervisors’ actions.

Contact: Julie Puentes
(714) 663-0294, jpuentes@hasc.org