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August Payment Hold

Updated July 29, 2008

Effective August 7, 2008 (the first warrant release date of August), reimbursement to Medi-Cal institutional providers, except for small and rural hospitals, designated public hospitals, and local educational agencies, will be held during the month of August and released one week at a time after the budget is signed. Each check write in August will be delayed by four weeks or longer depending on when the budget is enacted. Payments to Medi-Cal non-institutional providers will not be held. Please note, the list below is limited to providers whose claims are processed by the Medi-Cal fiscal intermediary.

To ensure implementation of this proposal, the Department of Health Care Services will hold reimbursement to the following Medi-Cal institutional providers.

Medi-Cal Institutional Providers
Adult Day Health Care Centers (ADHC)
Assistive Device and Sick Room Supply Dealers
Blood Banks
Clinical Laboratories
Fabricating Optical Laboratory/Prison Industry Authority (PIA)
Home Health Agencies (HHA)
Community Hospital Outpatient Departments
Community Hospital Inpatient (with the exception of Designated Public Hospitals)
Long Term Care (LTC) facilities
Ground Medical Transportation
Genetic Disease Testing
Public Law 95 – 210 Rural Health Clinic/Federally Qualified Health Center (RHC/FQHC)
Air Ambulance Transportation Services
Certified Hospice Service per Assembly Bill 4249
Free Clinics
Community Clinics
Chronic Dialysis Clinics
Multispecialty Clinics
Surgical Clinics
Exempt from Licensure Clinics
Rehabilitation Clinics
County Clinics not associated with a hospital
Birthing Center Services: Primary Care Clinics
Clinics otherwise undesignated
Alternative Birth Centers: Specialty Clinics
Home and Community Based Services (HCBS) Nursing Facilities
County Hospital Inpatient (with the exception of Designated Public Hospitals)
County Hospital Outpatient
Pediatric Subacute Care: LTC (distinct and freestanding) LTC accommodation codes 83 – 90 and 91 – 98
Institutions for Mental Disease: Mental Health Inpatient
Multipurpose Senior Services Program (MSSP)
Indian Health Services
Residential Care Facilities for the Elderly


The following providers are exempt from the August payment hold.

Local Educational Agencies
Small and Rural Hospitals
Designated Public Hospitals – Inpatient Payments