Inland Empire Health Plan (IEHP) and L.A. Care Health Plan, two of California’s largest publicly-operated Medi-Cal managed health plans, recently announced efforts to provide financial support to hospitals and health systems during the COVID-19 pandemic.

A complete press release on the development is available here and below.

“We are tremendously grateful for the admirable actions of our health plan partners,” said HASC President/CEO George W. Greene. “The efforts of IEHP and L.A. Care are helping to lead our hospitals and communities down a more prosperous path, and it’s HASC’s hope that this model will be emulated by other health plans in support of their provider partners.”

In preparation for a potential surge of COVID-19 hospitalizations, California hospitals preserved their bed capacity and were called upon to increase existing capacity by 40-50 percent through the cancelation and/or postponement of non-emergent procedures. This action created significant financial pressure on provider organizations, drastically reducing revenues at a time when expenses for personal protective equipment and supplies increased – and are in short supply.

“It’s HASC’s hope that this model will be emulated by other health plans in support of their provider partners.”

                                 –HASC President/CEO George W. Greene

To strengthen their contracted hospitals’ abilities to respond to the COVID-19 pandemic, IEHP is amending its contracts to include a capitation feature that will pay a facility the hospital’s expected net patient revenue for IEHP Medi-Cal members or their monthly claims’ average for calendar year 2019, whichever is greater. IEHP is expecting to provide more than $90 million in support to providers during their pandemic response efforts.

L.A. Care’s efforts have focused on accelerating claim payments to hospitals, with $85 million in payments made on top of its typical claims processing amounts of $200 million. This improved flow is due to a new standard of payment for electronic claims within five days, and for paper claims within 10 days during the COVID-19 pandemic

At a time when communities are relying on hospitals more than ever to provide care for all and ensure a safe recovery as we work to reopen the economy, hospital leaders are facing tough decisions about layoffs, furloughs, and service reductions. Through collaborative efforts such as these, and the future support of other health plans, our hospitals can focus on what they do best: ensuring the safety and health of the communities they serve.

With any questions, please contact HASC Vice President, External Affairs and Strategic Communications Adam Blackstone.

Contact:
Adam Blackstone
(213) 538-0761
ablackstone@hasc.org