Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Providers, counties and PACE operators oppose new DHCS fee and sanction proposals; committee hears concerns
Summary
Department of Health Care Services presented a PACE workload and fee proposal that would fund new DHCS positions with a fee on PACE capitation; dozens of PACE organizations and counties testified in opposition, saying the fee is excessive, unclear and could destabilize fragile programs for frail elderly Californians.
The Department of Health Care Services asked the Senate subcommittee for authority to charge PACE organizations a fee — capped at 1 percent of capitation — to fund program oversight and staff positions it says are needed to process applications, perform readiness reviews and maintain ongoing oversight of a growing PACE sector. DHCS proposed 33 permanent positions to handle increased workload from new and expanding PACE organizations and said the fee would be collected into a PACE Oversight Fund and reflected as part of annual capitation rates.
PACE organizations and county partners strongly objected. Val Sheehan, CEO of the California PACE Association, told the subcommittee the proposal "was not developed at all with stakeholder engagement" and warned that, because the 1% cap is measured against a modest industry margin, the fee could represent a large share of provider profits. "Up to 1% of 5% is 20%," Sheehan said, illustrating the potential impact on programs that…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
